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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 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 30gallon heavyduty plastic container.

Budgeted quantity

Budgeted price

Direct materials

0.4

pounds

$40

per pound

Direct labor

0.3

hours

$16

per hour

During July, GII produced and sold

3,000

containers using

1,400

pounds of direct materials at an average cost per pound of

$37

and

925

direct manufacturing labor hours at an average wage of

$16.30

per hour.

The direct material price variance during July is ________.

A.

$4,200

unfavorable

B.

$4,200

favorable

C.

$8,000

unfavorable

D.

$9,000

unfavorable

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