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  3. outtogetyou, corp. uses the following standard cos

OutToGetYou, Corp. uses the following standard costs to produce each unit of output of their...

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Accounting

OutToGetYou, Corp. uses the following standard costs to produce each unit of output of their product:

Standard Price (or Rate)

Standard Quantity (or DL hours)

Direct Materials

$2.00 per gram

4.5 grams

Direct Labor

$12.00 per DL hour

0.75 DL hours

Variable Factory OH

$3.60 per DL hour

0.75 DL hours

Fixed Factory OH

$2.40 per DL hour

0.75 DL hours

The company had budgeted production of 20,000 units of output and budgeted using 15,000 DL hours. Factory OH standard rates are calculated based on budgeted DL hours.

During the latest month, the company actually produced 18,000 units. To produce the 18,000 units, the firm purchased and used 73,800 grams of direct materials at a total cost of $132,840. Direct labor costs for the month totaled $188,640 based on 14,400 actual direct labor hours worked. Variable factory overhead costs incurred totaled $49,680 and fixed factory overhead incurred was $35,500. Based on this information, the variable OH spending variance for the month was:

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