Question
The Garden Gnomes 'R' Us firm manufactures concrete garden ornaments for sale to home ware stores and garden centres. Budgeted costs for the company's top
The Garden Gnomes 'R' Us firm manufactures concrete garden ornaments for sale to home ware stores and garden centres. Budgeted costs for the company's top selling Garden Gnome 'Thbre Ralphy' for the previous month were as follows: Standard Usage Standard Price Direct Labour 5 hrs (per unit) $15 (per hr) Direct Material 5 kg (per unit) $40 (per kg) The firm produced 500 units during the last month and direct labour hours worked amounted to 2,5500 hours at a total cost to the firm of $49,725. Manufacturing also consumed 3045 kilograms of direct materials during the month which was purchased for $119,687. Calculate the Garden Ornamental Co's total Direct Material Price variance for the month. (Calculate answers to the nearest even $. Please note that favourable variances will be a negative amount and unfavourable variances will appear as a positive amount) 1 points SAVE ANSWER
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