Question
The following standard costs are given for each book produced at Bordewick's Books for July 2021. Direct Materials (250 pages @ $0.01 per page)$25.00 Direct
The following standard costs are given for each book produced at Bordewick's Books for July 2021.
Direct Materials (250 pages @ $0.01 per page)$25.00
Direct Labor (0.5 hours @ $12/hour)6.00
Variable Manufacturing Overhead (0.5 hours @ $2.20/hour)1.10
Total Standard Variable Cost per unit$32.10
During July 2021, Bordewick's Books sold 370 books.Actual costs incurred in making the books are as follows:
Materials Purchased:95,000 pages @ $.015/page$1,425
Materials Used:93,000 pages
Direct Labor:148 hours @ $11.50/hour1,702
Variable Manufacturing Overhead:333
What is the Direct Materials Quantity Variance?
- A.$5 Unfavorable
- B.$25 Unfavorable
- C.$475 Unfavorable
- D.$25 Favorable
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