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Genent Industries, Inc. (Gll), developed standard costs for direct material and direct labor. In 2015, GIl estimated the following standard costs for one of their

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Genent Industries, Inc. (Gll), developed standard costs for direct material and direct labor. In 2015, GIl estimated the following standard costs for one of their major products, the 30-gallon heavy-duty plastic container. Budgeted quantity Budgeted price Direct materials 0.30 pounds $20 per pound Direct labor 0.20 hours $12 per hour During July, Gil produced and sold 3,000 containers using 1,000 pounds of direct materials at an average cost per pound of $19 and 625 direct manufacturing labor hours at an average wage of $11.75 per hour. The direct material efficiency variance during July is $2.000 unfavorable $2,000 unfavorable $1,000 favorable $1.000 unfavorable O $1.100 favorable

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