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Genent Industries, Inc. (GII), developed standard costs for direct material and direct labor. In 2017, GIl estimated the following standard costs for one of their
Genent Industries, Inc. (GII), developed standard costs for direct material and direct labor. In 2017, GIl estimated the following standard costs for one of their major products, the 30-gallon heavy-duty plastic container. Direct materials Direct labor Budgeted quantity 0.8 pounds 0.2 hours Budgeted price $50 per pound $16 per hour During July, GIl produced and sold 3,000 containers using 2,700 pounds of direct materials at an average cost per pound of $47 and 675 direct manufacturing labor hours at an average wage of $16.40 per hour. The direct material efficiency variance during July is O A. $6,900 favorable O B. $6,900 unfavorable O C. $14,100 favorable OD. $15,000 unfavorable
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