Author Question: Heavy Products, Inc. developed standard costs for direct material and direct labor. In 2017, AII ... (Read 67 times)

Marty · **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 quantity

Budgeted price

Direct materials

0.30 pounds

$90 per pound

Direct labor

0.25 hours

$30 per hour

During June, Heavy Products produced and sold 15,000 containers using 2,400 pounds of direct materials at an average cost per pound of $92 and 3,750 direct manufacturing labor-hours at an average wage of $91.25 per hour.

The direct manufacturing labor efficiency variance during June is ________.
◦ $85,547 unfavorable
◦ $229,687.5 favorable
◦ $918,750 unfavorable
◦ $0

sierramartinez · **Reply #1 on:** Mar 6, 2021

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