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EKPN CoProduces Wooden Boxes

question 18

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EKPN Co.produces wooden boxes.The company's standards per box require 6 boards, each costing $10 per board, and half of an hour of direct labour.The standard labour rate is $15 per hour.In August, EKPN Co.Purchased 12,000 boards for a total cost of $123,000.It used 11,500 boards to manufacture 1,900 boxes.Total labour hours were 1,000 hours, and total labour costs were $16,250.What was the material quantity variance for August?

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Definitions:

Labor

The physical and mental effort used in the process of production, or the act of giving birth.

Rh Incompatibility

Rh incompatibility is a condition that occurs during pregnancy if a mother's Rh blood type is negative and her fetus's Rh blood type is positive, potentially leading to hemolytic disease of the newborn.

Rh-Negative

A blood type classification indicating the absence of the Rh factor, a specific protein found on the surface of red blood cells.

Rh-Positive

Refers to the presence of the Rh factor on the surface of red blood cells, a protein that can play a significant role in blood transfusions and pregnancy.

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