Actual quantity of direct materials purchased and used = 30,000 pounds
Actual cost of direct materials = $84,000
Unfavorable direct materials quantity variance = $3,000
Standard quantity of direct materials allowed for May production = 29,000 pounds
For the month of May, what was Rex's direct materials price variance?
The budget for May called for production of 9,000 units. Actual output for the month was 8,500 units with total direct materials cost of $127,500 and total direct labor cost of $77,775. The direct labor standards call for 45 minutes of direct labor per unit at a cost of $12 per direct labor-hour. The direct materials standards call for one pound of direct materials per unit at a cost of $15 per pound. The actual direct labor-hours were 6,375. Variance analysis of the performance for the month of May would indicate:
$7,500 favorable materials quantity variance.
$1,275 favorable direct labor efficiency variance.
$1,275 unfavorable direct labor efficiency variance.
$1,275 unfavorable direct labor rate variance.