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Direct Materials6 pounds at .90 per pound=$5.40
Direct Labor .5 hour at $12.00 per hour=$6.00
Manufacturing overhead .5 hour at $4.80 per hour=$2.40
Problem 1: During the latest month, the company purchased and used 58,000 pounds of direct materials at a price of $1.00 per pound to produce 10,000 units of output. Direct labor costs for the month totaled $56,350 based on 4,900 direct labor hours worked. Variable manufacturing overhead costs incurred totaled $15,000 and fixed manufacturing overhead incurred was $10,400. Based on this information, the total direct materials cost variance for the month was?
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