Question
Malone, Inc. manufactures one product called Tybos. The company uses a standard cost system and has established the following material and labor standards to produce
Malone, Inc. manufactures one product called Tybos. The company uses a standard cost system and has established the following material and labor standards to produce one unit of Tybo:
Standard Quantity | Standard Price | |
Direct materials | 2.5 pounds | $3 per pound |
Direct labor | 0.6 hours | $10 per hour |
Malone estimates it would produce 6,400 units of Tybos for the month of March. During March, the following activity was recorded by the company relating to actual production of Tybos: The company produced 6,000 units during the month. A total of 16,000 pounds of materials were purchased and used at a cost of $2.75 per lb. a & b. The Materials Price Variance for March is $. Indicate whether this variance is favorable or unfavorable . c & d. The Materials Quantity Variance for March is $. Indicate whether this variance is favorable or unfavorable . e &f. The Materials Flexible Budget Variance is $ Indicate whether this variance is favorable or unfavorable .
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