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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