Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Tomm Industries, Inc. (SII), developed standard costs for direct material and direct labor. In 2020, SII estimated the following standard costs for one of their

Tomm Industries, Inc. (SII), developed standard costs for direct material and direct labor. In 2020, SII estimated the following standard costs for one of their major products, the 10-gallon plastic container. Budgeted quantity of Direct materials is 0.10 pounds and Budgeted price of Direct materials is $30 per pound. Budgeted quantity of Direct labor is 0.05 hours and Budgeted price of Direct labor is $15 per hour. During April, SII produced and sold 5,000 containers using 490 pounds of direct materials at an average cost per pound of $32 and 250 direct manufacturing labor-hours at an average wage of $15.25 per hour. April's direct material usage (efficiency) variance is:

$980 unfavorable

$300 favorable

$680 favorable

None of these answers are correct.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Sound Investing, Chapter 24 - The Auditors??? Opinion

Authors: Kate Mooney

2nd Edition

0071719466, 9780071719469

More Books

Students also viewed these Accounting questions

Question

11.1 Explain the strategic importance of total rewards.

Answered: 1 week ago

Question

11.3 Define pay equity and explain its importance today.

Answered: 1 week ago