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The Kweller Company developed the following standards for the manufacture of its product: Each unit should have 2 pounds of direct materials purchased at $12
The Kweller Company developed the following standards for the manufacture of its product:
- Each unit should have 2 pounds of direct materials purchased at $12 per pound.
- Each unit should be produced in 3 hours at a direct labor cost of $20 per hour.
Actual production was 3,000 units using 5,800 pounds of direct materials at an actual total cost of $73,400 and required 9,400 direct labor hours at an actual total cost of $182,600. What was the the direct labor price 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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