The company developed standard costs for direct materials and direct labor. In 2020, the company estimated the
Question:
The company developed standard costs for direct materials and direct labor. In 2020, the company estimated the following standard costs for one of its main products, plastic packaging.
Budget Quantity Budget Price
Direct Materials 0.25 pound $30 per pound
Direct labor 0.13 hours $16 per hour
During July, the Company produced and sold 5,000 containers using 1,100 pounds of direct materials at an average cost per pound of $29, and 600 hours of direct manufacturing labor at an average wage of $15 per hour.
Flexible direct material: budget variance is
Managerial Accounting
ISBN: 9780073526706
12th Edition
Authors: Ray H. Garrison, Eric W. Noreen, Peter C. Brewer