Genent Industries, Inc. (GIl), developed standard costs for direct material and direct labor. In 2017, Gll estimated the following standard costs for one of their major products, the 30 – gallon heavy- duty plastic container.
During July, Gll produced and sold 3,000 containers using 2,250 pounds of direct materials at an average cost per pound of $6 and 675 direct manufacturing labor hours at an average wage of $11.25 per hour.
The direct manufacturing labor efficiency variance during July is
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