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Author Question: Heavy Products, Inc. developed standard costs for direct material and direct labor. In 2017, AII ... (Read 33 times)

NClaborn

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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 materials0.80 pounds$60 per pound
Direct labor0.10 hours$20 per hour

During June, Heavy Products produced and sold 15,000 containers using 25,000 pounds of direct materials at an average cost per pound of $64 and 12,000 direct manufacturing labor-hours at an average wage of $21.56 per hour.

June's direct material flexible-budget variance is ________.
◦ $60,000 unfavorable
◦ $100,000 favorable
◦ $880,000 unfavorable
◦ $18,720 favorable


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Marked as best answer by NClaborn on Mar 6, 2021

robbielu01

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NClaborn

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Reply 2 on: Mar 6, 2021
Wow, this really help


bbburns21

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Reply 3 on: Yesterday
Gracias!

 

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