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Petromelis Textiles, Inc. provides the following standard cost data per unit of product: Direct material (3 gallons @ $6 per gallon) $ 18.00 Direct labor
Petromelis Textiles, Inc. provides the following standard cost data per unit of product: Direct material (3 gallons @ $6 per gallon) $ 18.00 Direct labor (2 hours @ $10 per hour) $ 20.00 During the period, the company produced and sold 22,000 units, incurring the following costs: Direct material 68,000 gallons @ $ 5.90 per gallon Direct labor 45,500 hours @ $ 9.75 per hour The direct labor usage variance was: O $14,625 favorable. O $15,000 favorable. 0 $14,625 unfavorable. $15,000 unfavorable
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