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Mid City Products Inc. (MCP), developed standard costs for direct material and direct labor. In 2017, MCP estimated the following standard costs for one of
Mid City Products Inc. (MCP), developed standard costs for direct material and direct labor. In 2017, MCP estimated the following standard costs for one of their most popular products. Budgeted quantity 4 pounds Direct materials Direct labor Budgeted price $2.25 per pound $12 per hour 0.1 hours During September, MCP produced and sold 1,000 units using 4,200 pounds of direct materials at an average cost per pound of $2 and 60 direct labor hours at an average wage of $12.50 per hour. The direct labor price variance during September is OA. $480 unfavorable B. $50 favorable C. $30 favorable D. $30 unfavorable
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