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A company uses the following standard costs to produce a single unit of output. ---...

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Accounting

A company uses the following standard costs to produce a single unit of output.

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Direct materials 6 pounds at $0.90 per pound = $ 5.40

Direct labor 0.50 hour at $10.00 per hour = $ 5.00

Manufacturing overhead 0.50 hour at $4.40 per hour = $ 2.20

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During the latest month, the company purchased and used 57,000 pounds of direct materials at a price of $1.10 per pound to produce 10,000 units of output. Direct labor costs for the month totaled $45,600 based on 4,750 direct labor hours worked. Variable manufacturing overhead costs incurred totaled $18,000 and fixed manufacturing overhead incurred was $20,000. Based on this information, the direct materials quantity variance for the month was:

Multiple Choice

A.) $2,700 favorable

B.) $11,400 unfavorable

C.) $11,400 favorable

D.) $2,700 unfavorable

E.) $2,000 favorable

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