The following cost information is for Leslie Company.

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 280 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.

  • $4,500 Unfavorable
  • $1,500 Unfavorable
  • $2,500 Unfavorable
  • $1,500 Favorable
  • $4,500 Favorable
  • $2,500 Favorable
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