Genent Industries, Inc. (GII), developed standard costs for direct material and direct labor. In 2020, GIl estimated the following standard costs for one of their major products, the 30-gallon heavy- duty plastic container. Direct materials Direct labor During July, GIl produced and sold 3000 containers using 1350 pounds of direct materials at an average ost per pound of $25 and 1550 direct manufacturing labor hours at an average wage of $12.75 per hour. $600.00 unfavorable The direct manufacturing labor efficiency variance during July is: $1162.50 favorable Budgeted quantity 0.40 pounds 0.50 hours $637.50 unfavorable Budgeted price $30 per pound $12 per hour $1762.50 favorable

Genent Industries, Inc. (GII), developed standard costs for direct material and direct labor. In 2020 , Gll estimated the following standard costs for one of their major products, the 30-gallon heavyduty plastic container. During July, Gll produced and sold 3000 containers using 1350 pounds of direct materials at an average cost per pound of $25 and 1550 direct manufacturing labor hours at an average wage of $12.75 per hour. The direct manufacturing labor efficiency variance during July is: $600.00 unfavorable $1162.50 favorable $637.50 unfavorable $1762.50 favorable