Question

Genent Industries, Inc. (GII), developed standard costs for direct material and direct labor. In 2017, GIl estimated the following standard costs for one of their major products, the 30-gallon heavy-duty plastic container. Direct materials Direct labor Budgeted quantity. 0.4 pounds 0.5 hours Budgeted price $50 per pound $20 per hour During July, GIl produced and sold 4,000 containers using 1,850 pounds of direct materials at an average cost per pound of $48 and 2,090 direct manufacturing labor hours at an average wage of $20.75 per hour. The direct material efficiency variance during July is O A. $8,800 favorable O B. $12,500 unfavorable OC. $8,800 unfavorable O D. $12,000 favorable

Answer 1

The answer has been presented in the supporting sheet. All the parts has been solved with detailed explanation and format. For detailed answer refer to the supporting sheet.

BC Answer 3 The correct answer is B) $ 12500 Unfavourable 5 Direct material effeciency variance = (actual Pounds - budgeted pounds)* Standard Rate Per pound 6 = (1850-(4000*.4))*50 7 = $ 12500 Unfavourable 9 Thus the correct answer is B) $ 12500 Unfavourable