Majer Corporation makes a product with the following standard costs:
|Standard Price or
|Standard Cost Per Unit|
|Direct materials||6.1||ounces||$||2.00||per ounce||$||12.20|
|Direct labor||0.2||hours||$||12.00||per hour||$||2.40|
|Variable overhead||0.2||hours||$||2.00||per hour||$||0.40|
The company reported the following results concerning this product in February.
|Originally budgeted output||5,400||units|
|Raw materials used in production||33,100||ounces|
|Actual direct labor-hours||1,890||hours|
|Purchases of raw materials||28,300||ounces|
|Actual price of raw materials||$||17.10||per ounce|
|Actual direct labor rate||$||7.60||per hour|
|Actual variable overhead rate||$||5.30||per hour|
The company applies variable overhead on the basis of direct labor-hours. The direct materials purchases variance is computed when the materials are purchased.
The materials quantity variance for February is: