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

30gallon

heavyduty

plastic container.

	Budgeted quantity	Budgeted price
Direct materials	0.2 pounds	$30 per pound
Direct labor	0.7 hours	$20 per hour

During July, GII produced and sold

4,000

containers using

1,050

pounds of direct materials at an average cost per pound of

$25

and

2,825

direct manufacturing labor hours at an average wage of

$20.30

per hour.

The direct manufacturing labor efficiency variance during July is ________.

Question content area bottom

Part 1

A.

$1,348

favorable

B.

$848

favorable

C.

$508

unfavorable

D.

$500

unfavorable