Question
The standard cost card for one unit of a certain finished product shows the following: Standard Quantity or Hours Standard Price or Rate Direct materials
The standard cost card for one unit of a certain finished product shows the following:
Standard Quantity or Hours Standard Price or Rate
Direct materials 10 pounds ? per pound
Direct labor 3.0 hours $16 per hour
Variable manufacturing overhead
4.0 hours $10 per hour
The total standard variable cost for one unit of finished product is $90 and the company produces 600 units of finished product in June. Additional information regarding direct materials in June include the following:
Actual quantity purchased | 5,400 | pounds |
Actual quantity used in production | 5,000 | pounds |
What is the materials quantity variance for the month?
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