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Genent Industries, Inc. (GII), developed standard costs for direct material and direct labor. In 2017, GII estimated the following standard costs for one of
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 30-gallon heavy-duty plastic container. Budgeted quantity 0.4 hours Budgeted price $50 per pound $12 per hour Direct materials 0.7 pounds Direct labor During July, Gll produced and sold 3,000 containers using 2,250 pounds of direct materials at an average cost per pound of $48 and 1,275 direct manufacturing labor hours at an average wage of $12.75 per hour. The direct material price variance during July is A. $7,500 unfavorable B. $4,500 favorable OC. $4,500 unfavorable OD. $6,000 unfavorable
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