Community Manufacturing Inc. developed the following standard costs for direct material and direct labor for one of their major products, the 30-gallon heavy-duty plastic container.

During May, Community produced and sold 10,000 containers using 2,200 pounds of direct materials at an average cost per pound of $24 and 1,050 direct labor hours at an average wage of $14.75 per hour.
-May's direct labor planning variance was:
A)$134,512.50 favorable.
B)$ 487.50 favorable.
C)$ 487.50 unfavorable.
D)indeterminable using the above information.

Question

Community Manufacturing Inc. developed the following standard costs for direct material and direct labor for one of their major products, the 30-gallon heavy-duty plastic container.
  
During May, Community produced and sold 10,000 containers using 2,200 pounds of direct materials at an average cost per pound of $24 and 1,050 direct labor hours at an average wage of $14.75 per hour.
-May's direct labor planning variance was:
A)$134,512.50 favorable. 
B)$ 487.50 favorable. 
C)$ 487.50 unfavorable. 
D)indeterminable using the above information.

Quizplus · Accepted Answer

A)Planned quantity of containers was not disclosed.