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 15,000 containers using 2,400 pounds of direct materials at an average cost per pound of $92 and 3,750 direct manufacturing labor-hours at an average wage of $91.25 per hour.
The direct manufacturing labor efficiency 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 15,000 containers using 2,400 pounds of direct materials at an average cost per pound of $92 and 3,750 direct manufacturing labor-hours at an average wage of $91.25 per hour.
The direct manufacturing labor efficiency variance during June is ________.

Quizplus · Accepted Answer

Direct manufacturing labor efficiency variance = [3,750 dlh − (15,000 × 0.25)] × $30 = $0