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Author Question: Heavy Products, Inc. developed standard costs for direct material and direct labor. In 2017, AII ... (Read 78 times)

soccerdreamer_17

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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 materials0.90 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


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Marked as best answer by soccerdreamer_17 on Mar 6, 2021

sailorcrescent

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soccerdreamer_17

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Reply 2 on: Mar 6, 2021
Great answer, keep it coming :)


JaynaD87

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Reply 3 on: Yesterday
:D TYSM

 

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