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Michael Corporation manufactures railroad cars, which is its only product. The standards for the railroad cars are as follows: Standard tons of direct material (steel)
Michael Corporation manufactures railroad cars, which is its only product. The standards for the railroad cars are as follows:
Standard tons of direct material (steel) per car 3
Standard cost per ton of steel $12.00
During the month of March, the company produced 1750 cars. Related production data for the month follows:
Actual materials purchased and used (tons) 6550
Actual direct materials total cost $115,000
What is the direct materials quantity variance for the month?
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