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The Tulip Company makes mugs for which the following standards have been developed: Standard Inputs Expected Standard Price Expected For Each Unit of Output Direct 5 ounces Materials Per Unit of Input $2 per ounce $8 per hour Direct Labor 2.5 hours Production of 400 mugs was expected in August, but 440 mugs were actually completed. Direct materials purchased and used were 2,100 ounces at an actual price of $2.20 per ounce. Direct labor cost for the month was $5,310, and the actual pay per hour was $9.00. What is the direct labor price variance for August? A) $420 Favorable B) $420 Unfavorable C) $590 Favorable D) $590 Unfavorable

The Tulip Company makes mugs for which the following standards have been developed: Standard Inputs Expected Standard Price Expected For Each Unit of Output Direct 5 ounces Materials Per Unit of Input $2 per ounce $8 per hour Direct Labor 2.5 hours Production of 400 mugs was expected in August, but 440 mugs were actually completed. Direct materials purchased and used were 2,100 ounces at an actual price of $2.20 per ounce. Direct labor cost for the month was $5,310, and the actual pay per hour was $9.00. What is the direct labor price variance for August? A) $420 Favorable B) $420 Unfavorable C) $590 Favorable D) $590 Unfavorable

FINANCIAL ACCOUNTING
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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The Tulip Company makes mugs for which the following standards have been developed: Standard Inputs Expected Standard Price Expected For Each Unit of Output Direct 5 ounces Materials Per Unit of Input $2 per ounce $8 per hour Direct Labor 2.5 hours Production of 400 mugs was expected in August, but 440 mugs were actually completed. Direct materials purchased and used were 2,100 ounces at an actual price of $2.20 per ounce. Direct labor cost for the month was $5,310, and the actual pay per hour was $9.00. What is the direct labor price variance for August? A) $420 Favorable B) $420 Unfavorable C) $590 Favorable D) $590 Unfavorable
Transcribed Image Text:The Tulip Company makes mugs for which the following standards have been developed: Standard Inputs Expected Standard Price Expected For Each Unit of Output Direct 5 ounces Materials Per Unit of Input $2 per ounce $8 per hour Direct Labor 2.5 hours Production of 400 mugs was expected in August, but 440 mugs were actually completed. Direct materials purchased and used were 2,100 ounces at an actual price of $2.20 per ounce. Direct labor cost for the month was $5,310, and the actual pay per hour was $9.00. What is the direct labor price variance for August? A) $420 Favorable B) $420 Unfavorable C) $590 Favorable D) $590 Unfavorable
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