The standard and actual costs for direct materials, direct labor and factory overhead for the manufacture of 2,500 units of product are as follows:
Standard costs
Direct materials 2,600 kilograms @ $8.75
Direct labor 7,400 hours @ $11.40
Actual costs
Direct materials 2,500 kilograms @ $8.00
Direct labor 7,500 hours @ $12.00
1. Using the information given above, the direct materials quantity variance is:
$875 unfavorable
$950 favorable
$875 favorable
$950 unfavorable
2. Using the information given above, the direct materials cost variance is:
$2,500 unfavorable
$2,500 favorable
$2,750 unfavorable
$2,750 favorable