Question
Mendocino Corporation has the following standard costs for its sole product. Direct Materials (2 pounds at $4.50 per pound) = $9.00 per unit Direct Labor
Mendocino Corporation has the following standard costs for its sole product.
Direct Materials (2 pounds at $4.50 per pound) | = $9.00 per unit |
Direct Labor (0.6 hours at $12.00 per hour) | = $7.20 per unit |
During July, Mendocino produced 2,000 units, bought and used 4,200 pounds of direct material at $4.80 per pound, and used 1,100 hours of labor at a total cost of $14,025.
Based on this information, what is the direct materials quantity variance?
Group of answer choices
$900 unfavorable
$1,200 unfavorable
($1,200) favorable
($900) favorable
Dairy Products Inc. produces gourmet cheese for resale at local grocery stores. Jakes expected to use 3.0 pounds of direct materials to produce one unit (batch) of product at a cost of $8 per pound. Actual results are in for last year, which indicates 45,000 units of cheese were sold. The company purchased 160,000 pounds of materials at $7.50 per pound, and used 145,000 pounds in production.
What is Jake's materials price variance?
$72,500 unfavorable
$80,000 unfavorable
($80,000) favorable
($72,500) favorable
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