The following cost information is for Leslie Company. Actual results: Total cost of purchasing material: $58,000
Number of labor hours worked: 1,000 hours
Number of material pounds used in production: 5,850 pounds
Total labor cost: $48,000
Number of units produced: 300 units
Number of material pounds purchased: 6,250 pounds
Leslie Company has established the following standards:
Price per pound of materials: $10.00 per pound
Number of pounds of material to produce one unit: 20 pounds
Standard labor rate: $50.00 per hour
Number of labor hours to produce one unit: 3 hours
Compute Leslie’s Materials Quantity Variance.
a. $1,500 Favorable
b. $1,500 Unfavorable
c. $2,500 Favorable
d. $2,500 Unfavorable
e. $4,500 Favorable
f. $4,500 Unfavorable