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The Clarke Company developed the following standards for the manufacture of its product: Each unit should have 4 pounds of direct materials purchased at $12
The Clarke Company developed the following standards for the manufacture of its product:
- Each unit should have 4 pounds of direct materials purchased at $12 per pound.
- Each unit should be produced in 2 hours at a direct labor cost of $20 per hour.
Actual production was 12,000 units using 49,000 pounds of direct materials at a total cost of $586,200 and required 23,500 direct labor hours at a total cost of $479,000. What was the direct labor "quantity" variance for the company? Use a positive number to indicate a favorable variance or a negative number to indicate an unfavorable variance.
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