Ponte Company Produced 2,500 Widgets During December Using 4,000 Units

Essay

Ponte Company produced 2,500 widgets during December using 4,000 units of materials at a cost of $5.00 each.It also used 5,000 direct labour hours at a rate of $7.00 per hour.Its direct materials standard is 2 units per widget.Its direct labour standard is 2.5 hours per widget.
Its materials price variance was a favourable $8,000,and its labour rate variance was an unfavourable $1,000.