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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 0.5 pounds 0.8 hours Budgeted price $20 per pound $15 per hour During July, GIl produced and sold 3,000 containers using 1,700 pounds of direct materials at an average cost per pound of $18 and 2,425 direct manufacturing labor hours at an average wage of $15.50 per hour. The direct manufacturing labor efficiency variance during July is O A. $1,588 favorable O B. $375 unfavorable O C. $388 unfavorable OD. $1,213 favorable
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