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.
Direct materials
8 pounds at $0.70 per pound
= $5.60
Direct labor
0.6 hour at $10.00 per hour
= $6.00
Manufacturing overhead
0.6 hour at $4.70 per hour
= $2.82
During the latest month, the company purchased and used 76,000 pounds of direct materials at a price of $0.80 per pound to produce 10,000 units of output. Direct labor costs for the month totaled $55,100 based on 5800 direct labor hours worked. Variable manufacturing overhead costs incurred totaled $25,200 and fixed manufacturing overhead incurred was $17,000. Based on this information, the total direct labor cost variance for the month was:
A. $2900 unfavorable
B. $2000 unfavorable
C. $2000 favorable
D.$2900 favorable
E. $4900 favorable
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