The KC Company developed the following standards for the manufacture of its product: • Each unit should have 4 pounds of direct materials purchased at $12 per pound. • Each unit should be produced in 2 hours at a direct labor cost of $20 per hour. Actual production was 12,000 units using 49,000 pounds of direct materials at a total cost of $586,200 and required 23,500 direct labor hours at a total cost of $479,000. What was the direct labor quantity variance for the company? Use a positive number to indicate a favorable variance or a negative number to indicate an unfavorable variance.

The KC Company developed the following standards for the manufacture of its product: • Each unit should have 4 pounds of direct materials purchased at $12 per pound. • Each unit should be produced in 2 hours at a direct labor cost of $20 per hour. Actual production was 12,000 units using 49,000 pounds of direct materials at a total cost of $586,200 and required 23,500 direct labor hours at a total cost of $479,000. What was the direct labor quantity variance for the company? Use a positive number to indicate a favorable variance or a negative number to indicate an unfavorable variance.

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter2: Basic Cost Management Concepts

Section: Chapter Questions

Problem 13E: Wyandotte Company provided the following information for the last calendar year: During the year,...

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