Talladega Industries, Inc., (BII) developed the following standard costs for direct material and direct labor for one
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Question:
Talladega Industries, Inc., (BII) developed the following standard costs for direct material and direct labor for one of their major products, the 10-gallon plastic container.
Standard quantity | Standard price | |
Direct materials | 0.10 pounds | $30 per pound |
Direct labor | 0.05 hours | $15 per hour |
During August, BII produced and sold 10,000 containers using 980 pounds of direct materials at an average cost per pound of $32 and 500 direct labor hours at an average wage of $15.25 per hour.
August's direct labor rate variance was:
Select one:
a. $125 unfavorable.
b. $125 favorable.
c. $142,375 favorable.
d. None of the above is correct.
Related Book For
Financial and Managerial Accounting
ISBN: 978-1285078571
12th edition
Authors: Carl S. Warren, James M. Reeve, Jonathan Duchac
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