1)     Apple Valley Orchards, Inc. (AVO), developed standard costs for direct material and direct labor. In

2019, AVO estimated the following standard costs for one of their most well-loved products, the AVO 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               1.45 pounds                      $7.15 per pound

       Direct labor                        0.25 hours                          $14.00 per hour

During September, AVO 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. Also, state if the variance is favorable or unfavorable for each answer below.

a)      September’s direct material flexible-budget variance is:

b)     September’s direct material price variance is:

c)      September’s direct material efficiency variance is:

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