Inaya Valley Orchards, Inc. (IVO), developed standard
costs for direct material and direct labor. In 2011, IVO estimated
the following standard costs for one of their most well loved
products, the IVO classic Grandma's large apple pie which had a
brown sugar coating on the top of the crust as well as including
cranberry and mince ingredients in addition to the apples. Budgeted
quantity Budgeted price Direct materials 1.50 kilograms $7.25 per
kilogram Direct labor 0.25 hours $14.00 per hour During September,
IVO produced and sold 1,200 pies using 1,875 pounds of direct
materials at an average cost per pound of $7.00 and 280 direct
labor hours at an average wage of $14.25 per hour. Required:
September's direct manufacturing labor price variance is:
September's direct manufacturing labor efficiency variance is:
September's direct material price variance is: September's direct
material quantity variance is:
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