nigpo manufucturing

Direct material variances The Ningpo Manufacturing Company is a joint venture between U.S.and Chinese firms with an assembly plant located in Ningpo, on the eastern coast of China. Thecompany’s managers expected to produce 20,000 units of product in March. The standard cost forthe materials used for 20,000 units is 173,600 yuan, and the standard cost per unit is 2.80 yuan perpound. Actual production in March was 19,100 units. The company purchased and used 57,300pounds of materials costing 163,305 yuan.