Marigold Company has developed the following standards for one of its product.

Direct materials: 10 pounds × $12 per pound

Direct labor: 4 hours x $12 per

Variable overhead: 5 hours × $10 per hour

The following activity occurred during the month of October:

Materials purchased: 10,000 pounds costing $150,000

Materials used: 6,000 pounds

Units produced: 500 units

Direct labor: 2,300 hours at $23.60/hour

The company records materials price variances at the time of purchase.

a. $53,000 U.

b. $30,000 U.

c. $12,000 F.

d. $41,000 F.

Answer rating: 100% (QA)

b 30000 Actual units produced 500 Units Actual units purchase ... View the full answer