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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