Answer the Following Questions Using the Information Below

question 20

Multiple Choice

Answer the following questions using the information below:
Diana Industries, Inc. (DII) , developed standard costs for direct material and direct labor. In 2010, DII estimated the following standard costs for one of their major products, the 10-gallon plastic container.
During June, DII produced and sold 10,000 containers using 980 pounds of direct materials at an average cost per pound of $32 and 500 direct manufacturing labor-hours at an average wage of $15.25 per hour.
-June's direct manufacturing labor price variance is:

• A)$125 unfavorable
• B)$125 favorable
• C)$7,623.50 unfavorable
• D)None of these answers are correct.

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Definitions:

Standard Suite

A collection of benchmarks, protocols, or specifications that establish a norm or minimum level of acceptability for products, services, or practices.

Total Optimal Cost

The lowest possible sum of costs achieved by optimizing the allocation of resources in operations or production.

Double-subscripted Variables

variables in mathematics and programming denoted with two subscripts, usually to represent matrix elements or the interaction between two dimensions.

Binary Variable

A binary variable is a type of variable that can take one of two possible values, typically represented as 0 or 1, to indicate the absence or presence of some characteristic.