Plastic Pro, Inc. (PPI), developed standard costs for direct material and direct labor. In 2022, PPI estimated
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Plastic Pro, Inc. (PPI), developed standard costs for direct material and direct labor. In 2022, PPI estimated the following standard costs for one of Its better products, the 30-gallon heavy-duty plastic container. Budgeted quantity 020 pounds Direct materials Direct labor Budgeted price $40 per pound 0.10 hours $18 per hour During May, PPI produced and sold 4,000 containers using 1,000 pounds of direct materials at an average cost per pound of $37 and 475 direct manufacturing labor hours at an average wage of $18.75 per hour. The direct material efficiency variance during May is: O $5,000 favorable O $5,000 unfavorable O $7,400 favorable O $8,000 unfavorable
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