Question
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
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started