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

question 78

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 manufacturing labor flexible-budget variance during July is ________.

• A) $375.00 unfavorable
• B) $131.25 favorable
• C) $143.75 unfavorable
• D) $1,000 favorable

---

Definitions:

Control Accounts

General ledger accounts that summarize and control the total of individual accounts found in subsidiary ledgers.

General Ledger

The primary accounting record of a company that uses double-entry bookkeeping, containing all the financial accounts and transaction data.

Postings Frequency

The rate or regularity at which financial transactions are recorded and posted in accounting systems or ledgers.

Cash Sale Return

The process of refunding a customer in cash for the return of goods previously purchased with cash.