The Russell Company Provides the Following Standard Cost Data Per

question 69

Multiple Choice

The Russell Company provides the following standard cost data per unit of product: $\begin{array}{ll } \text {Direct material ( 3 gallons @ \$ 6 per gallon) } & \$ 18.00 \\ \text { Direct labor ( 2 hours @ \$ 10 per hour) } &\$ 20.00 \end{array}$
During the period,the company produced and sold 22,000 units incurring the following costs: $\begin{array}{ll} \text {Direct material } & \text { 68,000 gallons @ \$ 5.90 per gallon } \\ \text { Direct labor } & \text { 45,500 hours @ \$ 9.75 per hour } \end{array}$
The direct material usage variance was:

• A) $12,000 unfavorable.
• B) $12,000 favorable.
• C) $11,800 unfavorable.
• D) $11,800 favorable.

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