ABC Company began operations on June 1, 2019. For its first month of operations, ABC Company...

 

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ABC Company began operations on June 1, 2019. For its first month of operations, ABC Company established the following standards for unit of its single product: direct materials direct labor variable overhead standard quantity 8 pounds 7 hours 7 hours standard price $3.50 per pound $15.00 per hour $7.50 per hour The following information is available for surge for the month of June: 1. 65,000 pounds of direct materials were purchased at a total cost of $188,500. 2. 45,000 direct labor hours were worked at a total cost of $731,250. 3. The variable overhead cost for the month totaled $325,000. 4. 6,500 units were produced. 5. At June 30, ABC Company had 8,000 pounds of direct materials on hand. calculate the direct material quantity variance for June. If the variance is favorable, enter an F after your number with a space between the number and the F (i.e., 10,000 F). If the variance is unfavorable, enter a U after your number with a space between the number and the U (1.e., 10,000 u). ABC Company began operations on June 1, 2019. For its first month of operations, ABC Company established the following standards for unit of its single product: direct materials direct labor variable overhead standard quantity 8 pounds 7 hours 7 hours standard price $3.50 per pound $15.00 per hour $7.50 per hour The following information is available for surge for the month of June: 1. 65,000 pounds of direct materials were purchased at a total cost of $188,500. 2. 45,000 direct labor hours were worked at a total cost of $731,250. 3. The variable overhead cost for the month totaled $325,000. 4. 6,500 units were produced. 5. At June 30, ABC Company had 8,000 pounds of direct materials on hand. calculate the direct material quantity variance for June. If the variance is favorable, enter an F after your number with a space between the number and the F (i.e., 10,000 F). If the variance is unfavorable, enter a U after your number with a space between the number and the U (1.e., 10,000 u).

Answer rating: 100% (QA)

Answer To calculate the direct material quantity variance for June well use the followi... View the full answer