The Stratt Corporation had the following information for its…
The Stratt Corporation had the following information for its product: For direct materials, the company determined that each unit should have 1.5 pounds of direct materials purchased at $8 per pound. Actual production information revealed that 44,000 pounds of direct materials were used at an average cost of $8.07 per pound. For direct labor, the company determined that each unit should be produced in 1 minute at a direct labor cost of $12 per hour. Actual production information revealed that 580 direct labor hours were used at an average cost of $12.50 per hour. If actual production was 30,000 units, what was the direct labor price variance for the company? Use a positive number to indicate a favorable variance or a negative number to indicate an unfavorable variance.
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