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Totes to Go, Inc. developed standard costs for direct material and direct labor. The following information is from the static budget for 2018: Expected production

Totes to Go, Inc. developed standard costs for direct material and direct labor. The following information is from the static budget for 2018:

Expected production and sales

7,000 units

Expected selling price per unit

$ 680

Total fixed costs

$1,400,000

In 2018, Totes estimated the following standard costs for one of its major product, the canvas tote bag

Standard Quantity

Standard Price

Standard Unit Cost

Direct materials

10 pounds

$ 8 per pound

$ 80

Direct manufacturing labor

3.7 hours

$50 per hour

$185

During 2018, the actual number of units produced and sold was 4,800, at an average selling price of $720. The actual cost of direct materials used was $392,700, based on 66,000 pounds purchased at $5.95 per pound. Direct manufacturing labor-hours actually used were 18,300, at the rate of $48 per hour. As a result, actual direct manufacturing labor costs were $878,400. Actual fixed costs were $1,170,000. There were no beginning or ending inventories.

What is the direct materials Static budget variance?

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