The Petunia Company makes mugs for which the following standards have been developed: Production of 400 mugs was expected in August,but 440 mugs were actually completed.Direct materials purchased and used were 2,100 ounces at an actual price of $2.20 per ounce.Direct labor cost for the month was $5,310,and the actual pay per hour was $9.00.What is the direct labor price variance for August?
A)$420 Favorable
B)$420 Unfavorable
C)$590 Favorable
D)$590 Unfavorable

Question

The Petunia Company makes mugs for which the following standards have been developed:  Production of 400 mugs was expected in August,but 440 mugs were actually completed.Direct materials purchased and used were 2,100 ounces at an actual price of $2.20 per ounce.Direct labor cost for the month was $5,310,and the actual pay per hour was $9.00.What is the direct labor price variance for August?
A)$420 Favorable 
B)$420 Unfavorable 
C)$590 Favorable 
D)$590 Unfavorable

Quizplus · Accepted Answer

The Answer of The Petunia Company makes mugs for which the following standards have been developed:  Production of 400 mugs was expected in August,but 440 mugs were actually completed.Direct materials purchased and used were 2,100 ounces at an actual price of $2.20 per ounce.Direct labor cost for the month was $5,310,and the actual pay per hour was $9.00.What is the direct labor price variance for August?
A)$420 Favorable 
B)$420 Unfavorable 
C)$590 Favorable 
D)$590 Unfavorable

The Petunia Company Makes Mugs for Which the Following Standards