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Question - Driver Company Ltd has set the following standards for the production of one unit of product. Normal production each month is 500 units
Standard Costs per unit:
Direct materials: 8kg at $6.50 per kg
Direct labour: 4 hours at $7.00 per hour
During June, actual production amounted to 420 units. All direct material was purchased and used this month. Actual costs amounted to:
Direct material: 3500kgs at a total cost of $21875
Direct labour: 1720 hours at a total cost of $12212
Required - Determine the standard material quantity variance for June production?
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