Parker Corporation manufactures and sells a standard tool used by the automotive industry to build automobiles.
To manufacture one tool the following parts are needed.
Description Quantity Cost per unit Total Cost
Square metal piece X $ $
Round metal piece $ $
Metal Stand $ $
During the month of May Parker Corporation produced and sold tools at a selling price of $ per tool.
Raw Materials requisition records indicated that the following raw materials were requisitioned by production employees to put into the production process.
Description Quantity
Square metal piece X
Round metal piece
Metal Stand
Purchasing records indicate the Parker purchased the following during the month of May.
Description Quantity Total Cost
Square metal piece X $
Round metal piece $
Metal Stand $
Based on the data shown above, what is the total amount of direct materials variance:
