Heavy Products, Inc. (HPI) developed standard costs for direct material and direct labor. In 2020, HPI estimated the following standard costs for one of their major products, the 10-gallon plastic container.Budgeted quantityBudgeted price$80 per poundDirect materialsDirect labor0.10 pounds0.15 hours$20 per hourDuring June, Heavy Products produced and sold 18,000 containers using 2200 pounds of direct materials at an average cost per pound of $83 and 1800 direct manufacturing labor-hours at an average wage of $21.56 per hour.The direct material price variance during June isO A. $6600 unfavorableOB. $38,600 unfavorableOC. $38,600 favorableOD. $2808 favorable

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Description: Heavy Products, Inc. (HPI) developed standard costs for direct material and direct labor. In 2020, HPI estimated the following standard costs for one of their major products, the 10-gallon plastic container.Budgeted quantityBudgeted price$80 per pou

Direct material price variance is used to measure the difference in price paid to purchase the…

Business

Accounting

Heavy Products, Inc. (HPI) developed standard costs for direct material and direct labor. In 2020, HPI estimated the following standard costs for one of their major products, the 10-gallon plastic container. Budgeted quantity Budgeted price $80 per pound 0.10 pounds 0.15 hours $20 per hour Direct materials Direct labor During June, Heavy Products produced and sold 18,000 containers using 2200 pounds of direct materials at an average cost per pound of $83 and 1800 direct manufacturing labor-hours at an average wage of $21.56 per hour. The direct material price variance during June is O A. $6600 unfavorable OB. $38,600 unfavorable OC. $38,600 favorable OD. $2808 favorable

Heavy Products, Inc. (HPI) developed standard costs for direct material and direct labor. In 2020, HPI estimated the following standard costs for one of their major products, the 10-gallon plastic container. Budgeted quantity Budgeted price $80 per pound 0.10 pounds 0.15 hours $20 per hour Direct materials Direct labor During June, Heavy Products produced and sold 18,000 containers using 2200 pounds of direct materials at an average cost per pound of $83 and 1800 direct manufacturing labor-hours at an average wage of $21.56 per hour. The direct material price variance during June is O A. $6600 unfavorable OB. $38,600 unfavorable OC. $38,600 favorable OD. $2808 favorable

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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