Beakins Corporation produces a single product.The standard cost card for the product is as follows: Direct materials
Question:
Beakins Corporation produces a single product. The standard cost card for the product is as follows:
Direct materials (4 yards × $5 per yard) | $20 |
Direct labor (1.5 hours × $10 per hour) | $15 |
Variable manufacturing overhead (1.5 hours × $4 per hour) | $6 |
During a recent period, the company produced 1,200 units of product. The following are various costs associated with the production of these units:
Purchased Direct Materials (6,000 Yards) | $28,000 | |
Direct materials used in production | 5,000 | yards |
Direct labor cost incurred (2,100 hours) | $17,850 | |
Variable manufacturing overhead cost incurred | $10,080 |
The company records all variances at the earliest possible time. Variable manufacturing overhead costs are applied to products based on standard direct labor hours.
The variation in the price of materials for the period is ?
Managerial Accounting
ISBN: 9780073526706
12th Edition
Authors: Ray H. Garrison, Eric W. Noreen, Peter C. Brewer