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Author Question: Heavy Products, Inc. developed standard costs for direct material and direct labor. In 2017, AII ... (Read 28 times)

soccerdreamer_17

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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 materials0.90 pounds$60 per pound
Direct labor0.10 hours$30 per hour

During June, Heavy Products produced and sold 19,000 containers using 1,200 pounds of direct materials at an average cost per pound of $63 and 17,100 direct manufacturing labor-hours at an average wage of $31.25 per hour.

The direct manufacturing labor price variance during June is ________.
◦ $21,375 unfavorable
◦ $21,375 favorable
◦ $3,600 unfavorable
◦ $950,400 unfavorable
Horngren's Cost Accounting: A Managerial Emphasis ¦ Datar, Rajan ¦ 16th Edition
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Marked as best answer by soccerdreamer_17 on Mar 6, 2021

sailorcrescent

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Reply #1 on: Mar 6, 2021
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soccerdreamer_17

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Reply 2 on: Mar 6, 2021
Excellent

cpetit11

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Reply 3 on: Yesterday
:D TYSM

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