Question
Genent Industries, Inc. (GII), developed standard costs for direct material and direct labor. In 2017, GII estimated the following standard costs for one of their
Genent Industries, Inc. (GII), developed standard costs for direct material and direct labor. In 2017, GII estimated the following standard costs for one of their major products, the 30minusgallon heavyminusduty plastic container. Budgeted quantity Budgeted price Direct materials 0.6 pounds $ 30 per pound Direct labor 0.4 hours $ 11 per hour During July, GII produced and sold 3 comma 000 containers using 2 comma 100 pounds of direct materials at an average cost per pound of $ 26 and 1 comma 250 direct manufacturing labor hours at an average wage of $ 11.50 per hour. The direct material efficiency variance during July is ________.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started