Question
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 | Budgeted price | ||
Direct materials | 2 |
pounds | $ 7.60 |
per pound | |
Direct labor | 0.3 |
hours | $ 18 |
per hour |
During September, MCP produced and sold
2 comma 000
units using
4 comma 200
pounds of direct materials at an average cost per pound of
$ 7
and
550
direct labor hours at an average wage of
$ 18.30
per hour.
The direct labor efficiency variance during September is ________.
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