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Question - Buddy Industries, Inc., (BII) developed the following standard costs for direct material and direct labor for one of their major products, the 10-gallon plastic container.
Standard quantity
Standard price
Direct materials
0.10 pounds
$30 per pound
Direct labor
0.05 hours
$15 per hour
During August, BII produced and sold 10,000 containers using 980 pounds of direct materials at an average cost per pound of $32 and 500 direct labor hours at an average wage of $15.25 per hour.
What is August direct material cost variance?
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