In July, a company expected that the cost of direct material…
In July, a company expected that the cost of direct materials would amount to $24 for each unit of its product. Although the company had expected to produce 10,000 units during July, the company actually produced 11,500 units. The actual cost of direct materials per unit amounted to $19. What is the sales volume (activity) variance for direct materials? Indicate whether the variance is favorable or unfavorable.