Answer the Following Questions Using the Information Below:
Animent Industries

question 126

Multiple Choice

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.
$\begin{array}{lll}&\text { Budgeted quantity }&\text { Budgeted price }\\\text { Direct materials } & 0.10 \text { pounds } & \$ 60 \text { per pound } \\\text { Direct labor } & 0.05 \text { hours } & \$ 30 \text { per hour }\end{array}$ 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.
-The direct material price variance during June is ________.

• A) $7,600 unfavorable
• B) $1,600 favorable
• C) $1,600 unfavorable
• D) $500 favorable

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Definitions:

Lemonade

A sweetened beverage made from lemon juice, water, and sugar, often associated with simple entrepreneurial ventures like lemonade stands.

Popcorn

A type of corn kernel which expands and puffs up when heated, often consumed as a snack.

Perfect Complements

Goods that are always used together in fixed proportions, such that an increase in the consumption of one necessitates an equal percentage increase in the other.

Indifference Curves

Graphical representations in economics illustrating different combinations of goods that provide an individual with equal levels of utility.