Luc, Inc., manufactures a single product. The company uses a standard cost system and has
established the following direct material standards for one unit of product:
- The company produced 4,000 units during the month, which was 500 less than budgeted.
- A total of 10,000 pounds of material were purchased at a cost of $38,000.
- There was no beginning inventory of materials on hand to start the month; at the end of the
month, 3,000 pounds of material remained in the warehouse.
or unfavorable) : _______________________
favorable or unfavorable) : ________________