Alpha Company developed standard costs for direct material and direct labour. In 2021, Alpha estimated the following standard costs for one of their major products, the 10-gallon plastic container.
Budgeted quantity Budgeted price
Direct materials 0.69 pounds $72 per pound
Direct labour 0.29 hours $32.93 per hour
During December, Alpha produced and sold 24952 containers, purchasing and using 14031 pounds of direct materials at an average cost per pound of $67 and 6928 direct manufacturing labour-hours at an average wage of $35.62 per hour.
December’s direct material flexible-budget variance is $________. (If the variance is unfavourable, present your answer as a negative (e.g., -100), if it is a favourable variance, present as it is (e.g., 100)). (Round your final answer to the nearest dollar.)
