Question
Sleepy Monk Coffee bottles coffee drinks which are sold to retailers throughout Oregon and Washington. The direct materials quantity and price standards are 6 ounces
Sleepy Monk Coffee bottles coffee drinks which are sold to retailers throughout Oregon and Washington. The direct materials quantity and price standards are 6 ounces per bottle at $1.80 per ounce and the direct labor quantity and price standards are 0.5 hours per bottle at $24 per hour. During June, the company produced 20,000 bottles and used 116,000 ounces of direct materials that were purchased for $2 per ounce. What is Sleepy Monks total materials variance for June?
a) $23,200 unfavorable
b) $8,000 unfavorable
c) $7,200 favorable
d) $16,000 unfavorable
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