26 Dec Standard Gears produces lawn mower gears. It uses
Standard Gears produces lawn mower gears. It uses units as the cost driver for overhead. The following information was provided concerning its standard cost system:Actual DataBudgeted and Standard DataProduced12,400 unitsMaterials purchased4,650 lbs. for a total cost of $32,550Materials used4,700 lbs.Labor worked7,460 hrs. costing $79,822Actual overheadFixed: $84,800 Variable $36,100Budgeted units12,500 unitsBudgeted materials0.40 lb. @ $7.10 per lb.Budgeted labor36 minutes @ $11.00 per hourBudgeted variable overhead$35,625Budgeted fixed overhead$85,500How much is the direct material price variance?$465 favorable$1,846 favorable$470 favorable$2,201 favorable
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