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The Echo Company developed the following standards for the manufacture of its product: Each unit should be produced with 2 pounds of direct materials at
The Echo Company developed the following standards for the manufacture of its product:
- Each unit should be produced with 2 pounds of direct materials at a cost of $6 per pound.
- Each unit should be produced in 2.5 hours at a direct labor cost of $12 per hour.
Actual production was 3,200 units and required 16,000 pounds of direct materials at a total cost of $102,000 as well as 18,000 direct labor hours at a total cost of $189,000. For a manufacturing variance, what was the quantity budget 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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