The following cost information is for Leslie Company. Actual results
Total cost of purchasing material $58,000
Number of labor hours worked 1,000 hours
Number of material pounds used in production 5,850 pounds
Total labor cost $48,000 Number of units produced 280 units
Number of material pounds purchased 6,250 pounds
Leslie Company has established the following standards.
Price per pound of materials $10.00 per pound
Number of pounds of material to produce one unit 20 pounds
Standard labor rate $50.00 per hour
Number of labor hours to produce one unit 3 hours
Compute Leslie’s Materials Quantity Variance.
$1,500 Favorable
$4,500 Favorable
$4,500 Unfavorable
$2,500 Unfavorable
$2,500 Favorable
$1,500 Unfavorable
Material Quantity Variance |
||||||
( |
Standard Quantity = 280 units x 20 std pounds |
- |
Actual Quantity used |
) |
x |
Standard Rate |
( |
5600 |
- |
5850 |
) |
x |
$ 10.00 |
-2500 |
||||||
Variance |
$ 2,500.00 |
Unfavourable-U |
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