Question
Demizio Valley Orchards, Inc. (DVO), developed standard costs for direct material and direct labor. In 2015, DVO estimated the following standard costs for one of
Demizio Valley Orchards, Inc. (DVO), developed standard costs for direct material and direct labor. In 2015, DVO estimated the following standard costs for one of their most well loved products, the DVO classic Grandma's large apple pie which had a brown sugar coating on the top of the crust as well as including cranberry and mince ingredients in addition to the apples.
Budgeted quantity | Budgeted price | |
Direct materials | 4 pounds | $5.4 per pound |
Direct labor | 0.9 hours | $14 per hour |
During September, DVO produced and sold
2,000 pies using 8,300 pounds of direct materials at an average cost per pound of $5 and 1,760 direct labor hours at an average wage of $14.40
per hour.
The direct labor price variance during September is ________.
A. $704.00 unfavorable
B. $704.00 favorable
C.$560.00 unfavorable
D. $720.00 favorable
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