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Author Question: Heavy Products, Inc. developed standard costs for direct material and direct labor. In 2017, AII ... (Read 69 times)

NClaborn

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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 materials0.80 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
Horngren's Cost Accounting: A Managerial Emphasis ¦ Datar, Rajan ¦ 16th Edition
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Marked as best answer by NClaborn on Mar 6, 2021

robbielu01

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Reply #1 on: Mar 6, 2021
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NClaborn

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

essyface1

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Reply 3 on: Yesterday
Gracias!

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