Community Manufacturing Inc

question 91

Multiple Choice

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 material price variance was:

• A)$2,800 favorable.
• B)$2,200 favorable.
• C)$5,000 unfavorable.
• D)None of the above is correct.

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