Question
Morro Bay SUP, LLC manufactures fiberglass paddleboards. The standard cost of direct materials and direct manufacturing labor is $100 per board. This includes 20 pounds
Morro Bay SUP, LLC manufactures fiberglass paddleboards. The standard cost of direct materials and direct manufacturing labor is $100 per board. This includes 20 pounds of direct materials, at the budgeted price of $2 per pound, and five hours of direct manufacturing labor, at the budgeted rate of $12 per hour. Following are additional data for the month of March:
Units completed | 6,000 units |
Direct materials purchased | 150,000 pounds |
Cost of direct materials purchased | $292,500 |
Actual direct labor hour logged | 32,000 hours |
Actual direct labor cost | $368,000 |
Direct materials quantity variance | $12,500 U |
Assuming there were no beginning inventories, calculate the following for March:
- DL variances
- Actual pounds of direct materials used in production
- Actual price per pound of direct materials purchased
- DM price variance
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