The Russell Company provides the following standard cost data per unit of product:
Direct material (3 gallons @ $3 per gallon) $9.00
Direct labor (2 hours @ $12 per hour) 24.00
During the period, the company produced and sold 22,000 units incurring the following costs:
Direct materials 68,000 gallons at $2.90 per gallon
Direct labor 44,500 hours at $12.05 per hour
The direct labor usage variance was:
$2,225 favorable.
$6,000 favorable.
$6,000 unfavorable.
$2,225 unfavorable.