Question
The Donald Company developed the following standards for the manufacture of its product: Each unit should have 2 pounds of direct materials purchased at $4
The Donald Company developed the following standards for the manufacture of its product:
Each unit should have 2 pounds of direct materials purchased at $4 per pound.
Each unit should be produced in 1 hours at a direct labor cost of $16 per hour.
Actual production was 6,000 units using 12,400 pounds of direct materials at a total cost of $60,800 and required 8,200 direct labor hours at a total cost of $110,400.
Use a positive number to indicate a favorable variance or a negative number to indicate an unfavorable variance for the following 2 questions.
What is the cost variance for direct materials?
What is the quantity variance for direct labor?
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