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Company X developed standard costs for direct material and direct labor. In 20x3...
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Company X developed standard costs for direct material and direct labor. In 20x3, Company X estimated the following standard costs for one of their most popular products.
During September, Company X produced and sold 2000 units using 14,400 pounds of direct materials at an average cost per pound of $7.00 and 950 direct labor hours at an average wage of $10.40 per hour.The direct labor flexible-budget variance during September is:
| Budgeted quantity | Budgeted price |
| Direct materials | 7 pounds | $7.30 per pound |
| Direct labor | 0.50 hours | $10.00 per hour |
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