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Problem - Bowie Sporting Goods manufactures sleeping bags. The manufacturing standards per sleeping bag, based on 5,000 sleeping bags per month, are as follows:
Direct material of 5.00 yards at $6.00 per yard
Direct labor of 3.00 hours at $20.00 per hour
Overhead applied per sleeping bag at $18
In the month of April, the company actually produced 5,100 sleeping bags using 26,800 yards of material at a cost of $5.70 per yard. The labor used was 13,750 hours at an average rate of $17.50 per hour. The actual overhead spending was $96,200.
Required - Determine the labor quantity variance and round to the nearest whole dollar. Enter a favorable variance as a negative number. Enter an unfavorable variance as a positive number.
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