Tomm Industries, Inc. (SII), developed standard costs for direct material and direct labor. In 2020, SII estimated the following standard costs for one of their major products, the 10-gallon plastic container. Budgeted quantity of Direct materials is 0.10 pounds and Budgeted price of Direct materials is $30 per pound. Budgeted quantity of Direct labor is 0.05 hours and Budgeted price of Direct labor is $15 per hour. During April, SII produced and sold 5,000 containers using 490 pounds of direct materials at an average cost per pound of $32 and 250 direct manufacturing labor- hours at an average wage of $15.25 per hour. April's direct material price variance is: O $300 favorable O None of these answers are correct. O $980 unfavorable O $680 favorable

Tomm Industries, Inc. (SII), developed standard costs for direct material and direct labor. In 2020, SII estimated the following standard costs for one of their major products, the 10-gallon plastic container. Budgeted quantity of Direct materials is 0.10 pounds and Budgeted price of Direct materials is $30 per pound. Budgeted quantity of Direct labor is 0.05 hours and Budgeted price of Direct labor is $15 per hour. During April, SII produced and sold 5,000 containers using 490 pounds of direct materials at an average cost per pound of $32 and 250 direct manufacturing labor- hours at an average wage of $15.25 per hour. April's direct material price variance is: O $300 favorable O None of these answers are correct. O $980 unfavorable O $680 favorable

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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