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Monster Company produces a product requiring 3 direct labor hours at $16.00 per hour. During January, 2,000 products are produced using 6,300 direct labor hours. Monster's actual payroll during January was $98,280. What is the labor quantity variance

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facundobuzzetti

Answer:

Direct material quantity variance= $4,800 unfavorable

Explanation:

Giving the following information:

Standard quantity= 3 hours per unit

Standard cost= $16.00 per hour.

During January:

2,000 products are produced using 6,300 direct labor hours.

To calculate the direct labor quantity variance, we need to use the following formula:

Direct material quantity variance= (standard quantity - actual quantity)*standard price

Direct material quantity variance= (2,000*3 - 6,300)*16

Direct material quantity variance= (6,000 - 6,300)*16

Direct material quantity variance= $4,800 unfavorable

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