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Kenosha Industries, Inc., ( KII ) developed the following standard costs for direct material and direct labor for one of their major products, the 1
Kenosha Industries, Inc., KII developed the following standard costs for direct material and direct labor for one of their major products, the gallon plastic container.
tableStandard Quantity,Standard PriceDirect materials, pounds,$ per poundDirect labor, hours,$ per hour
During August, KII produced and sold containers using pounds of direct materials at an average cost per pound of $ and direct labor hours at an average wage of $ per hour.
August's direct labor efficiency variance was:
a $ unfavorable.
b $ favorable.
c $ favorable.
d Zero variance.
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