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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 2 pounds 0.6 hours Budgeted price $7.50 per pound $15 per hour Direct materials Direct labor During September, MCP produced and sold 2,000 units using 4,300 pounds of direct materials at an average cost per pound of $7 and 1,160 direct labor hours at an average wage of $15.40 per hour The direct labor flexible-budget variance during September is O A. $616 unfavorable B. $136 unfavorable C. $136 favorable D. $616 favorable
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