Reference no: EM132633487

Leavy Products, Inc. developed standard costs for direct material and direct labor. In 2019, AII estimated the following standard costs for one of their major products, the 10-gallon plastic container.

                             Budgeted quantity               Budgeted price

Direct materials         0.80 pounds                $60 per pound

Direct labor                0.10 hours                     $20 per hour

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.

Problem 1: June's direct material flexible-budget variance is ________.

A) $60,000 unfavorable

B) $100,000 favorable

C) $880,000 unfavorable

D) $18,720 favorable