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  3. the trotter company developed the following standa

The Trotter Company developed the following standards for the manufacture of its product: Each unit...

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Accounting

  1. The Trotter Company developed the following standards for the manufacture of its product: Each unit should have 2(1)/(2) pounds of direct materials purchased at $6 per pound. Each unit should be produced in 1(1)/(2) hours at a direct labor cost of $18 per hour. Actual production was 8,000 units using 18,400 pounds of direct materials at a total cost of $102,600 and required 12,200 direct labor hours at a total cost of $218,000. What is the total variance for direct materials? Use a positive number to indicate a favorable variance or a negative number to indicate an unfavorable variance.

2) If a company is over budget in a performance report then an unfavorable budget variance will result. a favorable budget variance will result. either an unfavorable or a favorable budget variance could result.

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