Question 10

The Company developed standard costs for direct material and direct labor. In 2022, the Company estimated the following standard costs for one of their major products, the 30-gallon heavy-duty plastic container.

Budgeted quantity Budgeted price

Direct materials 0.10 pounds $30 per pound

Direct labor 0.30 hours $18 per hour

During July, the Company produced and sold 4,000 containers using 600 pounds of direct materials at an average cost per pound of $26 and 1,290 direct manufacturing labor hours at an average wage of $18.40 per hour. The direct manufacturing labor price variance during July is:

Group of answer choices

$1,620 favorable

$516 unfavorable

$1,620 favorable

$470 favorable

$470 unfavorable

$516 favorable