Variance

At the end of the month, you find that the labor and materials spent on manufacturing collars was different from what you estimated:

$$ The collar maker had to work nine hours a day instead of eight due to an increased demand for collars.

$$ Because of the increased demand, the hourly rate you paid your employee for making the collars increased to $$16\mathrm{.}50.$

$$ An increase in the cost of raw material led the direct material cost per collar to increase to $$10.$

$$ However, you also made and sold $60$ more collars than you expected to sell in the month.

You now need to determine the variance in the materials and labor cost from what you estimated in Milestone Two based on the market research data.