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Frogue Corporation uses a standard cost system. The following information was provided for the period that just ended:
Actual price per kilogram | $2.50 |
Actual kilograms of material used | 31,000 |
Actual hourly labor rate | $18.10 |
Actual hours of production | 4,900 labor hrs. |
Standard price per kilogram | $2.80 |
Standard kilograms per completed unit | 6 kilograms |
Standard hourly labor rate | $18.00 |
Standard time per completed unit | 1 hr. |
Actual total factory overhead | $34,900 |
Actual fixed factory overhead | $18,000 |
Standard fixed factory overhead rate | $1.20 per labor hour |
Standard variable factory overhead rate | $3.80 per labor hour |
Maximum plant capacity | 15,000 hours |
Units completed during the period | 5,000 |
The direct materials cost variance is _____.
a.$9,000 favorable
b.$9,000 unfavorable
c.$6,500 favorable
d.$6,500 unfavorable
Answer & Explanation
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