Answer the following questions using the information below:
Sawyer Industries, Inc. (SII), developed standard costs for direct material and direct labor. In 2011, SII estimated the following standard costs for one of their major products, the 30-gallon heavy-duty plastic container.
During July, SII produced and sold 5,000 containers using 1,100 pounds of direct materials at an average cost per pound of $24 and 525 direct manufacturing labor hours at an average wage of $14.75 per hour.
-July's direct material price variance is:
A)$1,400 favorable
B)$1,100 favorable
C)$2,500 unfavorable
D)None of these answers are correct.

Question

Answer the following questions using the information below:
Sawyer Industries, Inc. (SII), developed standard costs for direct material and direct labor. In 2011, SII estimated the following standard costs for one of their major products, the 30-gallon heavy-duty plastic container.
  During July, SII produced and sold 5,000 containers using 1,100 pounds of direct materials at an average cost per pound of $24 and 525 direct manufacturing labor hours at an average wage of $14.75 per hour.
-July's direct material price variance is:
A)$1,400 favorable 
B)$1,100 favorable 
C)$2,500 unfavorable 
D)None of these answers are correct.

Quizplus · Accepted Answer

The Answer of Answer the following questions using the information below:
Sawyer Industries, Inc. (SII), developed standard costs for direct material and direct labor. In 2011, SII estimated the following standard costs for one of their major products, the 30-gallon heavy-duty plastic container.
  During July, SII produced and sold 5,000 containers using 1,100 pounds of direct materials at an average cost per pound of $24 and 525 direct manufacturing labor hours at an average wage of $14.75 per hour.
-July's direct material price variance is:
A)$1,400 favorable 
B)$1,100 favorable 
C)$2,500 unfavorable 
D)None of these answers are correct.

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