Pontefract Company Produced 2,500 Widgets During November Using 4,000 Units

Essay

Pontefract Company produced 2,500 widgets during November using 4,000 units of materials at a cost of $5.00 each. It also used 5,000 direct labor hours at a rate of $7.00. Its direct materials standard is 2 units per widget. Its direct labor standard is 2.5 hours per widget.
Its materials price variance was a favorable $8,000 and its labor rate variance was an unfavorable $1,000.