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
10minus
gallon
plastic container.
Budgeted quantity | Budgeted price | ||
Direct materials | 0.9 |
pounds | $ 60 |
per pound | |
Direct labor | 0.1 |
hours | $ 10 |
per hour |
During June, Heavy Products produced and sold
23 comma 000
containers using
22 comma 000
pounds of direct materials at an average cost per pound of
$ 66
and
20 comma 700
direct manufacturing
laborminus
hours
at an average wage of
$ 11.56
per hour.
The direct material price variance during June is ________.
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