Answer the following questions using the information below:
Apple Valley Orchards, Inc. (AVO), developed standard costs for direct material and direct labor. In 2014, AVO estimated the following standard costs for one of their most well loved products, the AVO classic Grandma's large apple pie which had a brown sugar coating on the top of the crust as well as including cranberry and mince ingredients in addition to the apples.
During September, AVO produced and sold 1,200 pies using 1,875 pounds of direct materials at an average cost per pound of $7.00 and 280 direct labor hours at an average wage of $14.25 per hour.
-September's direct labor price variance is:

Question

Answer the following questions using the information below:
Apple Valley Orchards, Inc. (AVO), developed standard costs for direct material and direct labor. In 2014, AVO estimated the following standard costs for one of their most well loved products, the AVO classic Grandma's large apple pie which had a brown sugar coating on the top of the crust as well as including cranberry and mince ingredients in addition to the apples.
  During September, AVO produced and sold 1,200 pies using 1,875 pounds of direct materials at an average cost per pound of $7.00 and 280 direct labor hours at an average wage of $14.25 per hour.
-September's direct labor price variance is:

Quizplus · Accepted Answer

The direct labor price variance is calculated as the difference between the actual cost and the standard cost for the actual hours worked. If the actual cost is higher than the standard cost, the variance is unfavorable.

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