Question
Animent Industries, Inc. (AII), developed standard costs for direct material and direct labor. In 2016, AII estimated the following standard costs for one of their
Animent Industries, Inc. (AII), developed standard costs for direct material and direct labor. In 2016, AII estimated the following standard costs for one of their major products, the 10-gallon plastic container.
Budgeted quantity Budgeted price
Direct materials 0.10 pounds $60 per pound
Direct labor 0.05 hours $30 per hour
During June, AII produced and sold 20,000 containers using 1,900 pounds of direct materials at an average cost per pound of $64 and 1,000 direct manufacturing labor-hours at an average wage of $30.50 per hour.
The direct manufacturing labor efficiency variance during June is ________.
$0 | ||
$125 unfavorable | ||
$500 favorable | ||
$1,600 unfavorable |
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