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Please see attached.

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Screen Shot 2020-03-08 at 5.10.38 PM.png

The static budget for the month of May was for 12,500 units with direct materials at $22 per unit. Direct labor was
budgeted at 35 minutes per unit for a total of $87,000. Actual output for the month was 12,000 units with $264,000
in direct materials and $87,000 in direct labor expense. The direct labor standard of 35 minutes was maintained
throughout the month.
Determine whether a favorable or unfavorable variance occurred and what caused it.
Favorable/Unfavorable
Amount
 
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