Amber Manufacturing makes a product with the following standard costs: Direct materials Direct labor 2.5 liters $6.50 per liter 1.5 hours $12.50 per hour Variable overhead 1.5 hours $3.20 per hour The company produced 6,200 units in May using 15,900 liters of direct material and 3,400 direct labor hours. During the month, the company purchased 16,200 liters of direct material at $6.60 per liter. The actual direct labor rate was $12.80 per hour, and the actual variable overhead rate was $3.20 per hour. The company applies variable overhead on the basis of direct labor hours. The direct materials purchase variance is computed when the materials are purchased. What is the materials quantity variance for May?

Amber Manufacturing makes a product with the following standard costs: Direct materials Direct labor 2.5 liters $6.50 per liter 1.5 hours $12.50 per hour Variable overhead 1.5 hours $3.20 per hour The company produced 6,200 units in May using 15,900 liters of direct material and 3,400 direct labor hours. During the month, the company purchased 16,200 liters of direct material at $6.60 per liter. The actual direct labor rate was $12.80 per hour, and the actual variable overhead rate was $3.20 per hour. The company applies variable overhead on the basis of direct labor hours. The direct materials purchase variance is computed when the materials are purchased. What is the materials quantity variance for May?

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter6: Activity-based, Variable, And Absorption Costing

Section: Chapter Questions

Problem 6PB: Box Springs. Inc., makes two sizes of box springs: queen and king. The direct material for the queen...

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