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 10-gallon plastic container.

During June,Heavy Products produced and sold 19,000 containers using 1,200 pounds of direct materials at an average cost per pound of $63 and 17,100 direct manufacturing labor-hours at an average wage of $31.25 per hour.
The direct manufacturing labor price variance during June is ________.

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 10-gallon plastic container.

During June,Heavy Products produced and sold 19,000 containers using 1,200 pounds of direct materials at an average cost per pound of $63 and 17,100 direct manufacturing labor-hours at an average wage of $31.25 per hour.
The direct manufacturing labor price variance during June is ________.

Quizplus · Accepted Answer

Direct manufacturing labor price variance = 17,100 dlh × ($30 − $31.25)= $21,375 U