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Heavy Products, Inc. developed standard costs for direct material and direct labor. In 2017, All estimated the following standard costs for one of their major
Heavy Products, Inc. developed standard costs for direct material and direct labor. In 2017, All estimated the following standard costs for one of their major products, the 10-gallon plastic container. Budgeted quantity Budgeted price $80 per pound 0.25 hours $35 per hour Direct materials 0.7 pounds Direct labor During June, Heavy Products produced and sold 18,000 containers using 2,000 pounds of direct materials at an average cost per pound of $86 and 12,600 direct manufacturing labor-hours at an average wage of $35.50 per hour. The direct manufacturing labor price variance during June is, A. $6,300 favorable B. $6,300 unfavorable C. $12,000 unfavorable D. $836,000 unfavorable
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