Reference no: EM13826208

Problem:

Dudley Industries developed the following standard costs for direct materials and direct labor for gadgets:

	Standard quantity	Standard price
Direct materials	0.60 pounds	$25 per pound
Direct labor	0.20 hours	$18 per hour

During October, Dudley produced and sold 8,000 gadgets using 5,000 pounds of direct materials at an average cost per pound of $22.50, and 1,560 direct labor hours at an average wage of $18.20 per hour. What is the direct material quantity variance for October and what are likely causes of this variance?

Additional Information:

This question is basically belongs to Finance as well as it discusses about calculation computation of direct material quantity variance and the cause of variance.