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 | 0.5 pounds | $20 per pound | |
Direct labor | 0.8 hours | $11 per hour |
During July, GII produced and sold 3,000 containers using 1,700 pounds of direct materials at an average cost per pound of $18 and 2,450 direct manufacturing labor hours at an average wage of $11.40 per hour. The direct manufacturing labor price variance during July is ____.
A. $ 600.00 unfavorable B. $ 980.00 unfavorable C. $ 960.00 favorable D. $ 550.00 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