Chapter 7- BB exercise No. 2 -Practice Question no1 MSU makes blue jean jackets. The standard costs per jacket are as follows: Direct Material Budgeted Qty Bdgeted Price .20 .10 60.00 per yard 30.00 per hour Direct Labor MSU produced and sold 10,000 jackets using 1,000 yards of direct materials at a cost of $64.00 per yard and 500 hours of direct labor at a wage of $30.50 per hour. What is the direct manufacturing labor efficiency variance? Also, is the variance favorable or unfavorable? The format of vour answer must be as follows: The direct manufacturing labor efficiency variance is $10.00 Favorable (this is not the correct answer) Chapter 7- BB exercise No. 2 Practice Question no 2 MSU makes blue jean jackets. The standard costs per jacket are as follows: Budgeted Qty Bdgeted Price Budgeted Price Direct Material Direct Labor .20 .10 60.00 per yard 30.00 per hour MSU produced and sold 10,000 jackets using 1,000 yards of direct materials at a cost of $ 64.00 per yard and 500 hours of direct labor at a wage of $ 30.50 per hour. What is the direct manufacturing material price variance? The direct manufacturing material price variance is $10.00 Favorable - (this is not the correct answer)