Reference no: EM13788021
Materials: 2 yards per unit, $10 per yard
Labor: 0.25 DL hour per unit, $11 per hour
During October, the company experienced an anticipated spike in demand and increased production. Although planned production was for 8000 units, the company actually produced 10,000 units.
In anticipation of the original production volume, 18,000 yards were purchased, at a total cost of $175,000. During the month, 22,000 yards of material were used and 2,400 direct labor hours were worked. Direct labor cost for month totaled $27,000.
Compute the material variance and the quantity variance.
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