Jackson Industries uses a standard cost system in which direct materials inventory is carried at...
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Jackson Industries uses a standard cost system in which direct materials inventory is carried at standard cost. Jackson has established the following standards for one unit of product: Standard Cost $15.60 $12.80 Standard Quantity 6 pounds 1.60 hours Standard Price or Rate $2.60 per pound $8.00 per hour Direct materials Direct labor During May, Jackson purchased 93,600 pounds of direct material at a total cost of $262,080. The total factory wages for May were $184,000, 90 percent of which were for direct labor. Jackson manufactured 13,000 units of product during May using 75,600 pounds of direct material and 21,300 direct labor-hours The labor rate variance for May is: O $2.400 Favorable O $4,800 Favorable O $3,600 Unfavorable O $4,800 Unfavorable
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