Answer the following questions using the information below:
Animent Industries, Inc. (AII) , developed standard costs for direct material and direct labor. In 2015, AII estimated the following standard costs for one of their major products, the 10-gallon plastic container.
During June, AII produced and sold 20,000 containers using 1,900 pounds of direct materials at an average cost per pound of $64 and 1,000 direct manufacturing labor-hours at an average wage of $30.50 per hour.
-June's direct material flexible-budget variance is ________.
A) $7,200 unfavorable
B) $600 favorable
C) $1,600 unfavorable
D) $500 favorable
Correct Answer:
Verified
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