Author Question: Heavy Products, Inc. developed standard costs for direct material and direct labor. In 2017, AII ... (Read 39 times)

soccerdreamer_17 · **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

0.90 pounds

$60 per pound

Direct labor

0.10 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

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

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