Question

Heavy​ Products, Inc. developed standard costs for direct material and direct labor. In​ 2017, AII estimated the following standard costs for one of their major​ products, the 10minusgallon plastic container. Budgeted quantity Budgeted price Direct materials 0.9 pounds $ 50 per pound Direct labor 0.2 hours $ 35 per hour During​ June, Heavy Products produced and sold 16 comma 000 containers using 1 comma 900 pounds of direct materials at an average cost per pound of $ 54 and 3 comma 200 direct manufacturing laborminushours at an average wage of $ 51.00 per hour. The direct manufacturing labor efficiency variance during June is​ ________.

Answer 1

Answer:

Direct labor efficiency variance= 0

Explanation:

Giving the following information:

Direct labor 0.2 hours $ 35 per hour. During​ June, Heavy Products produced and sold 16,000 containers using 3,200 direct manufacturing labor-hours at an average wage of $ 51.00 per hour.

Direct labor efficiency variance= (Standard Quantity - Aactual Q)*standard rate

Direct labor efficiency variance= (0.2*16,000 - 3,200)*35= 0