Genent Industries, Inc. (GII), developed standard costs for direct material and direct labor. In 2017,...

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Accounting

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 30-gallon heavy-duty plastic container.

Budgeted quantity Budgeted price
Direct materials 0.70 pounds $50 per pound
Direct labor 0.80 hours $18 per hour

During July, GII produced and sold 4000 containers using 3000 pounds of direct materials at an average cost per pound of $45 and 3280 direct manufacturing labor hours at an average wage of $18.25 per hour. The direct labor efficiency variance during July is ________.

A

$1440.00 unfavorable

B

$2260.00 favorable

C

$820.00 favorable

D

$1460.00 unfavorable

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