Refer to information in QS 23-2. Assume the actual cost to manufacture one metal bat was $ 40. Compute the cost variance and classify it as favorable or unfavorable.
In QS 23-2, BatCo makes metal baseball bats. Each bat requires 1 kg. of aluminum at $ 18 per kg. and 0.25 direct labor hours at $ 20 per hour. Overhead is assigned at the rate of $ 40 per labor hour.
What amounts would appear on a standard cost card for BatCo?