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Pato Company produces leather sandals. The company employs a standard costing system and has the following standards in order to produce one pair of sandals:
Pato Company produces leather sandals. The company employs a standard costing system and has the following standards in order to produce one pair of sandals:
standard quantity standard price direct materials 3 strips $5 per strip direct labor 2 hours $7 per hour
During 2010, Pato purchased 12,400 leather strips at a total cost of $61,752. Pato used 11,500 leather strips and 8,400 direct labor hours to produce 4,000 pairs of sandals during 2010. Pato had no beginning inventories of any type for 2010. Pato paid its direct labors a rate of $6.75 per hour during 2010.
Calculate Pato's direct material quantity variance for 2010. If the variance is favorable, enter a capital F after your number with a space between the number and the F (i.e., 10,000 F). If the variance is unfavorable, enter a capital U after your number with a space between the number and the U (i.e., 10,000 U). Do not use decimals in your answer.
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