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Author Question: Heavy Products, Inc. developed standard costs for direct material and direct labor. In 2017, AII ... (Read 81 times)

fagboi

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on: Mar 6, 2021
Heavy Products, Inc. developed standard costs for direct material and direct labor. In 2017, AII estimated the following standard costs for one of their major products, the 10-gallon plastic container.

Budgeted quantityBudgeted price
Direct materials0.70 pounds$70 per pound
Direct labor0.10 hours$35 per hour

During June, Heavy Products produced and sold 25,000 containers using 23,000 pounds of direct materials at an average cost per pound of $75 and 17,500 direct manufacturing labor-hours at an average wage of $35.75 per hour.

The direct material price variance during June is ________.
◦ $115,000 unfavorable
◦ $500,000 favorable
◦ $500,000 unfavorable
◦ $13,125 favorable
Horngren's Cost Accounting: A Managerial Emphasis ¦ Datar, Rajan ¦ 16th Edition
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Marked as best answer by fagboi on Mar 6, 2021

Pariscourtney

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Reply #1 on: Mar 6, 2021
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fagboi

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Reply 2 on: Mar 6, 2021
:D TYSM

Hdosisshsbshs

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Gracias!

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