labor efficiency variance – Global Homework Experts

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.

order now

 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
a.$994 favorable
b.$825 unfavorable
c.$169 favorable
d.$844 unfavorable

Comments are closed.