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The Cartwheel Corporation developed the following standards for the manufacture of its product: Each unit should be produced using 16 pounds of direct materials purchased

The Cartwheel Corporation developed the following standards for the manufacture of its product:

  • Each unit should be produced using 16 pounds of direct materials purchased at $8 per pound.
  • Each unit should be produced in 2 hours at a direct labor cost of $15 per hour.

Actual production was 120 units and required 1,600 pounds of direct materials at a total cost of $9,600 as well as 230 direct labor hours. If the total direct labor variance was 80 unfavorable, what was the price variance for direct labor?

Use a positive number to indicate a favorable variance or a negative number to indicate an unfavorable variance.

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