Question
Sanford Ltd. produces a product with the following standard cost card: Direct materials (23 kg) $49.85 Direct labour (7 hours) 84.00 Variable overhead (7 hours)
Sanford Ltd. produces a product with the following standard cost card:
| Direct materials (23 kg) | $49.85 |
| Direct labour (7 hours) | 84.00 |
| Variable overhead (7 hours) | 21.00 |
| Fixed overhead (7 hours) | 35.00 |
The fixed overhead rate is based on a standard monthly volume of 16210 units.
The actual results for the month of July 20x5 are as follows:
| Direct materials purchased and used (324644 kg) | $620,000 |
| Direct labour (93000 hours) | 1,023,000 |
| Variable overhead | 320,000 |
| Fixed overhead | 580,000 |
| Units produced and sold | 15361 units |
What is Sanfords direct materials usage variance for July 20x5 (note: a negative number represents an unfavourable variance and a positive number represents a favourable variance)?
Select one:
a. $-62115
b. $104438
c. $-104438
d. $62115
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started