Plastic Pro, Inc. (PPI), developed standard costs for direct material and direct labor. In 2022, PPI estimated the following standard costs for one of Its better products, the 30-gallon heavy-duty plastic container. Budgeted quantity 0.20 pounds Direct materials Direct labor Budgeted price $40 per pound 0.10 hours $18 per hour During May, PPI produced and sold 4,000 containers using 1,000 pounds of direct materials at an average cost per pound of $37 and 475 direct manufacturing labor hours at an average wage of $18.75 per hour. The direct material efficiency variance during May is: O $5,000 favorable O $5,000 unfavorable O $7,400 favorable O $8,000 unfavorable

Plastic Pro, Inc. (PPI), developed standard costs for direct material and direct labor. In 2022, PPI estimated the following standard costs for one of Its better products, the 30-gallon heavy-duty plastic container. Budgeted quantity 0.20 pounds Direct materials Direct labor Budgeted price $40 per pound 0.10 hours $18 per hour During May, PPI produced and sold 4,000 containers using 1,000 pounds of direct materials at an average cost per pound of $37 and 475 direct manufacturing labor hours at an average wage of $18.75 per hour. The direct material efficiency variance during May is: O $5,000 favorable O $5,000 unfavorable O $7,400 favorable O $8,000 unfavorable

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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