Question
Heavy Products, Inc. developed standard costs for direct material and direct labor. In 2017, AII estimated the following standard costs for one of their major
Heavy Products, Inc. developed standard costs for direct material and direct labor. In 2017, AII estimated the following standard costs for one of their major products, the 10-gallon plastic container.
Budgeted quantity Budgeted price
Direct materials 0.30 pounds $90 per pound
Direct labor 0.25 hours $30 per hour
During June, Heavy Products produced and sold 15,000 containers using 2,400 pounds of direct materials at an average cost per pound of $92 and 3,750 direct manufacturing labor-hours at an average wage of $91.25 per hour.
The direct manufacturing labor efficiency variance during June is ________.
Group of answer choices
$918,750 unfavorable
$229,687.5 favorable
$0
$85,547 unfavorable
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