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Genent Industries, Inc. (GII), developed standard costs for direct material and direct labor. In 2017, Gll estimated the following standard costs for one of their
Genent Industries, Inc. (GII), developed standard costs for direct material and direct labor. In 2017, Gll estimated the following standard costs for one of their major products, the 30-gallon heavy-duty plastic container. Budgeted quantity Direct materials 0.8 pounds Budgeted price $20 per pound Direct labor 0.6 hours $13 per hour During July, Gll produced and sold 4,000 containers using 3,300 pounds of direct materials at an average cost per pound of $17 and 2,450 direct manufacturing labor hours at an average wage of $13.50 per hour. The direct material price variance during July is, e A. $9,900 favorable B. $2,000 unfavorable C. $12,000 unfavorable OD. $9,900 unfavorable
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