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17) Mid City Products Inc. (MCP), developed standard costs for direct material and direct labor. In 2017, MCP estimated the following standard costs for one
17) Mid City Products Inc. (MCP), developed standard costs for direct material and direct labor. In 2017, MCP estimated the following standard costs for one of their most popular products. Direct materials Direct labor Budgeted quantity 4 pounds 0.60 hours Budgeted price $7.25 per pound $17.00 per hour During September, MCP produced and sold 2,000 units using 8,200 pounds of direct materials at an average cost per pound of $7.00 and 1,160 direct labor hours at an average wage of $17.50 per hour. The direct labor efficiency variance during September is A) $700 unfavorable B) $100 unfavorable C) $600 favorable D) $680 favorable
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