Sawyer Industries, Inc. (SII), developed standard costs for direct material and direct labor. In 2023, SII
Sawyer Industries, Inc. (SII), developed standard costs for direct material and direct labor. In 2023, SII
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
| Sawyer Industries, Inc. (SII), developed |
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| Budgeted quantity | Budgeted price | |||||||||||||
| Direct materials | 0.20 pounds | $25 per pound | ||||||||||||
| Direct labor | 0.10 hours | $15 per hour | ||||||||||||
| During July, SII produced and sold 5,000 containers using 1,100 pounds of direct materials at an average cost per pound of $24 and 525 direct manufacturing labor hours at an average wage of $14.75 per hour. | ||||||||||||||
| July's direct material flexible- |
||||||||||||||
| A) $1,400 unfavorable | ||||||||||||||
| B) $21,100 favorable | ||||||||||||||
| C) $2,500 unfavorable | ||||||||||||||
| D) None of these answers are correct. | ||||||||||||||
| July's direct material price variance is: | ||||||||||||||
| A) $1,400 favorable | ||||||||||||||
| B) $1,100 favorable | ||||||||||||||
| C) $2,500 unfavorable | ||||||||||||||
| D) None of these answers are correct. | ||||||||||||||
| July's direct material efficiency variance is: | ||||||||||||||
| A) $1,400 unfavorable | ||||||||||||||
| B) $1,100 favorable | ||||||||||||||
| C) $2,500 unfavorable | ||||||||||||||
| D) None of these answers are correct. | ||||||||||||||
| July's direct manufacturing labor flexible-budget variance is: | ||||||||||||||
| A) $375.00 unfavorable | ||||||||||||||
| B) $131.25 favorable | ||||||||||||||
| C) $243.75 unfavorable | ||||||||||||||
| D) None of these answers are correct. | ||||||||||||||
| July's direct manufacturing labor price variance is: | ||||||||||||||
| A) $375.00 unfavorable | ||||||||||||||
| B) $131.25 favorable | ||||||||||||||
| C) $243.75 favorable | ||||||||||||||
| D) None of these answers are correct. | ||||||||||||||
| July's direct manufacturing labor efficiency variance is: | ||||||||||||||
| A) $375.00 unfavorable | ||||||||||||||
| B) $131.25 favorable | ||||||||||||||
| C) $243.75 favorable | ||||||||||||||
| D) None of these answers are correct. |
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