Their major products, the plastic container. Budgeted quantity Budgeted price Direct materials 0.25 pounds $30 per pound Direct labor 0.13 hours $16per hour Actual During July, Company produced and sold 5,000 containers using 1,100 pounds of direct materials at an average cost per pound of $29 and 600 direct manufacturing labor hours at an average wage of $15 per hour. Direct Material Flexible - Budget variance is

Total Material cost variance  $5,600  favorable

Explanation:

The direct matriculate total variance is he difference between the standard material cost for the actual output achieved and the actual material cost of the same output

Standard materiel cost per unit = 0.25 × $30 = $7.5  per unit

                                                                                                  $

5,000 units should have cost (5000×  $7.5) =                    37,500

but did cost  (actual cost        1,000 × $29                           31,900

Total Material cost variance                                                 5600  favorable

(a) when insurance is obtained through a reciprocal insurer, the insureds are sharing the risk of loss with other subscribers of that reciprocal.

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