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# Sanders Industries, Inc.

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Sanders Industries, Inc., developed the following standard costs for direct material and direct labor for one of their major products, the 30-gallon heavy-duty plastic container.
Standard quantity Standard price
Direct materials 0.20 pounds \$25 per pound
Direct labor 0.10 hours \$15 per hour

During July, Sanders produced and sold 10,000 containers using 2,200 pounds of direct materials at an average cost per pound of \$24 and 1,050 direct labor hours at an average wage of \$14.75 per hour.

1.Determine what is July's direct labor efficiency variance.
2.Determine what is July's direct labor rate variance.
3.Determine July's direct labor planning variance.

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#### Solution Preview

Sanders Industries, Inc. developed the following standard costs for direct material and direct labor for one of their major products, the 30-gallon heavy-duty plastic container.
Standard quantity Standard price
Direct materials 0.20 pounds \$25 per pound
Direct labor 0.10 hours \$15 per hour

During July, Sanders produced and sold 10,000 ...

#### Solution Summary

This solution is comprised of a detailed explanation to determine what is July's direct labor efficiency variance, what is July's direct labor rate variance, and July's direct labor planning variance.

\$2.49