Question
Cecilia Industries, Inc. (CII), developed standard costs for direct material and direct labor. In 2016, CII estimated the following standard costs for one of their
Cecilia Industries, Inc. (CII), developed standard costs for direct material and direct labor. In 2016, CII estimated the following standard costs for one of their major products, the 10-gallon plastic container.
Budgeted quantityBudgeted priceDirect materials.10 pounds$30 per poundDirect labor.05 hours$15 per hour
During June, CII produced and sold 10,000 containers using 980 pounds of direct materials at an average cost per pound of $32 and 500 direct manufacturing labor-hours at an average wage of $15.25 per hour.
June's direct material price variance ?
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