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Diana Industries, Inc. (Dil) developed standard costs for direct material and direct labor. In 2010, D estimated the following standard costs for one of
Diana Industries, Inc. (Dil) developed standard costs for direct material and direct labor. In 2010, D estimated the following standard costs for one of their major products, the 10- gallon plastic container. Budgeted quantity. Direct materials Direct labor 0.10 pounds 0.05 hours Budgeted price $90.00 per pound $45.00 per hour During June, Dil produced and sold 10,000 containers using 980 pounds of direct materials at an average cost of $96.00 per pound and 500 direct manufacturing labor-hours at an average wage of $45.75 per hour. The direct material price variance for June is: OA None of these answers are correct. OB. $4,080 unfavorable: C. $1,800 favorable OD. $5,880 unfavorable
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