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Splish Company budgeted the following cost standards for the current year:
| Direct materials (2 kg of plastic at $6.00 per kilogram) | | $12.00 | |
| Direct labour (2 hours at $12 per hour) | | 24.00 | |
| Variable manufacturing overhead | | 10.05 | |
| Fixed manufacturing overhead | | 6.30 | |
| Total standard cost per unit | | $52.35 | |
Actual costs for producing 2,730 units were as follows:
| Direct materials used | | 5,980 | kg | |
| Direct materials purchased (6,580 kg) | | $38,164 | | |
| Direct labour (6,930 hours) | | $67,914 | | |
| Variable manufacturing costs | | $33,000 | | |
| Fixed manufacturing costs | | $17,900 | | |
(b)
Calculate the materials quantity variance.
| Materials quantity variance | | $enter the materials quantity variance in dollars | select an option UnfavourableNeither favourable nor unfavourableFavourable |
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