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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 0.8 pounds 0.05 hours Budgeted price $50 per pound $25 per hour Direct materials Direct labor During June, Heavy Products produced and sold 19,000 containers using 21,000 pounds of direct materials at an average cost per pound of $54 and 15,200 direct manufacturing labor-hours at an average wage of $25.50 per hour. The direct material price variance during June is O A. $374,000 unfavorable B. $374,000 favorable O C. $84,000 unfavorable O D. $7,600 favorable
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