A company provided the following direct materials cost information. Compute the cost variance.

A company provided the following direct materials cost information. Compute the cost variance.
 

Standard costs assigned:
Direct materials standard cost (405,000 units @ $2/unit)	$810,000
Actual costs
Direct Materials costs incurred (403,750 units @ $2.20/unit)	$888,250

$2,500 Favorable.

$78,250 Favorable.

$78,250 Unfavorable.

$80,750 Favorable.

$80,750 Unfavorable.

Actual cost $888,250 - Standard cost $810,000 = $78,250 U

Georgia, Inc. has collected the following data on one of its products. The direct materials quantity variance is:
 

Direct materials standard (4 lbs. @ $1/lb.)	$4 per finished unit
Total direct materials cost variance—unfavorable	$13,750
Actual direct materials used	150,000 lbs.
Actual finished units produced	30,000 units

$30,000 favorable.

$13,750 unfavorable.

$16,250 favorable.

$30,000 unfavorable.

$13,750 favorable.

AQ * SP	150,000 lbs. * $1/lb. =	$150,000
SQ * SP	30,000 units * 4 lbs./unit * $1/lb. =	120,000
	Direct materials quantity variance	$30,000	U

Hassock Corp. produces woven wall hangings. It takes 2 hours of direct labor to produce a single wall hanging. Bartels' standard labor cost is $12 per hour. During August, Bartels produced 10,000 units and used 21,040 hours of direct labor at a total cost of $250,376. What is Bartels' labor rate variance for August?

$2,000 favorable.

$2,104 unfavorable.

$2,104 favorable.

$4,160 favorable.

$2,000 unfavorable.

AH * AR	Given	$250,376
AH * SR	21,040 * $12	252,480
	Direct labor rate variance	$2,104	F