Co provides the following standard cost data:
Direct material (3 gallons at $5 per gallon) $15.00
Direct Labor (2 hours at $12 per hour) $24.00
During the period, the company produced and sold 26,000 units, incurring the following costs:
Direct material (75,000 gallons at $4.90 per gallon
Direct Labor (47,500 hours at $12.05 per hour
The materials usage variance was:
a) $15,000 favorable b)$15,000 unfavorable c)$14,700 favorable d) $14,700 unfavorable
Please also explain how one would get labor usage variance.© BrainMass Inc. brainmass.com June 3, 2020, 9:27 pm ad1c9bdddf
Standard quantity required for actual production = 26000 units * 3 gallons per unit = 78000 gallons
Material usage variance = Standard cost per gallon* (actual quantity - ...
Material usage variance and labor usage variance are calculated.