Heavy Products, Inc. developed standard costs for direct material and direct labor. In 2017, All estimated the following standard costs for one of their major products, the 10-gallon plastic container. Budgeted quantity. Budgeted price Direct materials 0.80 pounds $60 per pound Direct labor 0.10 hours $20 per hour During June, Heavy Products produced and sold 15,000 containers using 25,000 pounds of direct materials at an average cost per pound of $64 and 12,000 direct manufacturing labor- hours at an average wage of $21.56 per hour. June's direct material flexible-budget variance is A) $18,720 favorable B) $880,000 unfavorable C) $100,000 favorable D) $60,000 unfavorable

Heavy Products, Inc. developed standard costs for direct material and direct labor. In 2017, All estimated the following standard costs for one of their major products, the 10-gallon plastic container. Budgeted quantity. Budgeted price Direct materials 0.80 pounds $60 per pound Direct labor 0.10 hours $20 per hour During June, Heavy Products produced and sold 15,000 containers using 25,000 pounds of direct materials at an average cost per pound of $64 and 12,000 direct manufacturing labor- hours at an average wage of $21.56 per hour. June's direct material flexible-budget variance is A) $18,720 favorable B) $880,000 unfavorable C) $100,000 favorable D) $60,000 unfavorable

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Description: Heavy Products, Inc. developed standard costs for direct material and direct labor. In 2017, Allestimated the following standard costs for one of their major products, the 10-gallon plasticcontainer.Budgeted quantity. Budgeted priceDirect materials

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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