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Say Something, Ltd. uses the following standard costs to produce each unit of output of their product: Standard Price (or Rate) Standard Quantity (or DL

Say Something, Ltd. uses the following standard costs to produce each unit of output of their product:

Standard Price (or Rate)

Standard Quantity (or DL hours)

Direct Materials

$1.50 per gram

7 grams

Direct Labor

$14.00 per DL hour

0.8 DL hours

Variable Factory OH

$4.20 per DL hour

0.8 DL hours

Fixed Factory OH

$2.60 per DL hour

0.8 DL hours

The company had budgeted production of 14,000 units of output and budgeted using 11,200 DL hours. Factory OH standard rates are calculated based on budgeted DL hours.

During the latest month, the company actually produced 15,000 units. To produce the 15,000 units, the firm purchased and used 101,250 grams of direct materials at a total cost of $162,000. Direct labor costs for the month totaled $198,075 based on 14,250 actual direct labor hours worked. Variable factory overhead costs incurred totaled $62,700 and fixed factory overhead incurred was $29,300. Based on this information, the direct materials quantity variance for the month was:

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