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The static budget for the month of May was for 12,500 units with direct materials at...

The static budget for the month of May was for 12,500 units with direct materials at $22 per unit. Direct labor was budgeted at 35 minutes per unit for a total of $87,000. Actual output for the month was 12,000 units with $264,000 in direct materials and $87,000 in direct labor expense. The direct labor standard of 35 minutes was maintained throughout the month.                                                                

Determine whether a favorable or unfavorable variance occurred and what caused it.                                                                     

Favorable/Unfavorable. Answer:                                             

Amount. Answer:            

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