A company uses the following standard costs to produce a single unit of output. Direct materials6 pounds at $0.90 per pound=$5.40 Direct labor0.5 hour at $12.00 per hour=$6.00 Manufacturing overhead0.5 hour at $4.80 per hour=$2.40 During the latest month, the company purchased and used 58,000 pounds of direct materials at a price of $1.00 per pound to produce 10,000 units of output. Direct labor costs for the month totaled $56,350 based on 4,900 direct labor hours worked. Variable manufacturing overhead costs incurred totaled $15,000 and fixed manufacturing overhead incurred was $10,400. Based on this information, the direct materials quantity variance for the month was:
A. $1,800 favorable
B. $1,800 unfavorable
C. $1,000 favorable
D. $5,800 unfavorable
E. $5,800 favorable
Answer: A
You might also like to view...
An intangible asset with a determinable useful life should be amortized over that useful life
Indicate whether the statement is true or false
Simulation models that are based on the generation of random numbers may fail to give the same solution in repeated use to any particular problem
Indicate whether the statement is true or false
One of the speculative financial risks considered in an enterprise risk management program is the risk of loss because of adverse changes in commodity prices, interest rates, foreign exchange rates, and the value of money. This risk is called
A) property risk. B) financial risk. C) strategic risk. D) operational risk.
RFID reader (RFID interrogator) is a transmitter/receiver that reads the contents of RFID tags in the area. A RFID system is composed of one or more RFID tags, one or more RFID readers, two or more antennas.
Answer the following statement true (T) or false (F)