Genent Industries, Inc During July, GII Produced and Sold 3,000 Containers Using 1,000

question 26

Multiple Choice

Genent Industries, Inc. (GII) , developed standard costs for direct material and direct labor. In 2015, GII estimated the following standard costs for one of their major products, the 30-gallon heavy-duty plastic container.
$\begin{array}{lll}&\text { Budgeted quantity }&\text { Budgeted price }\\\text { Direct materials } & 0.30 \text { pounds } & \$ 20 \text { per pound } \\\text { Direct labor } & 0.20 \text { hours } & \$ 12 \text { per hour }\end{array}$ During July, GII 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 ________.

• A) $1,000 unfavorable
• B) $1,100 favorable
• C) $2,000 unfavorable
• D) $1,000 favorable

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