Reference no: EM132595193
Question - ABC Company manufactures a single product and has set the following standards to produce one unit of this product:
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Standard quantity
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Standard price
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Direct materials
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7 pounds
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$12 per pound
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Direct labor
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5 hours
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$20 per hour
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During June, ABC produced 7,000 units using a total of 29,000 direct labor hours. ABC had no beginning inventories of any type for June. During June, ABC purchased 61,000 pounds of direct materials at a total cost of $683,200. At June 30, ABC had 8,000 pounds of direct materials in its inventory. The total cost of direct labor for ABC Company during June was $672,800.
Part A) Calculate the direct material quantity variance for June. If the variance is favorable, place a minus sign in front of your answer (i.e., -5000). If the variance is unfavorable, simply enter your answer as a number (i.e., 5000).
Part B) Calculate the total direct labor variance for June. If the variance is favorable, place a minus sign in front of your answer (i.e., -5000). If the variance is unfavorable, simply enter your answer as a number (i.e., 5000).