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 10minus−gallon plastic container. - Budgeted quantity Budgeted price Direct materials 0.10 pounds $ 50 per pound Direct labor 0.250 hours $ 20 per hour During​ June, Heavy Products produced and sold 22,,000 containers using 2,100 pounds of direct materials at an average cost per pound of $ 53 and 5,500 direct manufacturing laborminus−hours at an average wage of $ 50.50 per hour. The direct manufacturing labor efficiency variance during June is​____________?

Answer 1

Direct labor efficiency variance= $0

Step-by-step explanation:

Giving the following information:

Direct labor 0.250 hours $ 20 per hour. During​ June, Heavy Products produced and sold 22,000 containers using 5,500 direct manufacturing labor−hours at an average wage of $ 50.50 per hour.

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

Direct labor efficiency variance=[(22,000*0.250) - 5500] * 20= $0