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Question 62

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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.
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 material price variance is: A) $1,960 unfavorable B) $600 favorable C) $1,360 favorable D) None of these answers are correct. 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 material price variance is:


A) $1,960 unfavorable
B) $600 favorable
C) $1,360 favorable
D) None of these answers are correct.

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