Question

Cox Engineering performs cement core tests in its laboratory. The following standards have been set for each core test performed: Std. Hours or Quantity Std. Price or Rate Direct materials 3 pounds $0.75 per pound Direct labor 0.4 hours $12 per hour During March the laboratory performed 2,000 core tests. The following events occurred during March: 8,600 pounds of sand were purchased at a cost of $7,310. 7,200 pounds of sand were used for core tests. 840 actual direct labor hours were worked at a cost of $8,610. The direct material usage variance for March is:

Answer 1

1200 U

Step-by-step explanation:

Standard of material usage:

Material required 3 pounds per test

2000 core tests performed

Standard usage : 2,000 test * 3 pound per test = 6000 pounds

Actual usage of material = 7,200

Variance = 1,200 unfavorable.