Heavy Products, Inc

question 99

Multiple Choice

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 25,000 pounds of direct materials at an average cost per pound of $64 and 12,000 direct manufacturing labor-hours at an average wage of $21.56 per hour.
June's direct material flexible-budget variance is ________.

• A) $60,000 unfavorable
• B) $100,000 favorable
• C) $880,000 unfavorable
• D) $18,720 favorable

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Definitions:

Care Ethics

An ethical theory that emphasizes the moral importance of caring and nurturing relationships, focusing on responsiveness to the needs of others.

Abstract Theorizing

The process of thinking and theorizing in a way that is detached from practical considerations or concrete instances.

Aristotle

An ancient Greek philosopher and polymath, a student of Plato and teacher of Alexander the Great, whose works covered various subjects including physics, metaphysics, poetry, theater, music, logic, rhetoric, politics, government, ethics, biology, and zoology.

Virtues

Qualities or traits deemed to be morally good and desirable in a person, such as honesty, courage, and compassion.