Question
You have developed the following standard costs for direct material and direct labor for your product. In 2019, you estimated the following standard costs for
You have developed the following standard costs for direct material and direct labor for your product. In 2019, you estimated the following standard costs for one of your products, the 10-gallon cowboy hat.
Budgeted quantity Budgeted price
Direct materials 0.10 yards $60 per yard
Direct labor 0.05 hours $30 per hour
During June, you produced and sold 5,000 hats, purchasing and using 620 yards of direct materials at an average cost per yard of $64 and 276 direct manufacturing labor-hours at an average wage of $30.50 per hour.
June's direct labor efficiency variance is ________.
2) A unfavorable price variance for direct manufacturing labor might indicate that ________.
none of these
unexpected decrease in direct labor rates
employees were paid less than planned
higher skilled employees are being hired
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