Problem: Aco manufactures sleep pads/ Manufacturing standards per sleep pad based on 4,500 sleep pads per month:
Direct material of 5.25 at $5.00 per yard
Direct labor of 2 hours at $18.00 per hour
Overhead applied per sleep pad at $15,00
In April Aco actually produced 5,100 sleep pads using 27,250 yards of material at a cost of $5.25 per yard. Labor used was 11,250 hours at an average rate of $20.25 per hour. Actual overhead spending was $96,000.
Required: Calculate the total materials variance.
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