Genent Industries, Inc. (GII), developed standard costs for direct material and direct labor. In 2017, GII estimated the following standard costs for one of their major products, the30−gallonheavy−dutyplastic container. Budgeted quantityBudgeted price Direct materials0.40 pounds$50 per pound Direct labor0.50 hours$11 per hour During July, GII produced and sold 4,000 containers using 1,750 pounds of direct materials at an average cost per pound of $48 and 2,090 direct manufacturing labor hours at an average wage of $11.30 per hour. The direct manufacturing labor efficiency variance during July is ________.

Name: Genent Industries, Inc. (GII), developed standard costs for direct m
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Description: Genent Industries, Inc. (GII), developed standard costs for direct material and direct labor. In 2017, GII estimated the following standard costs for one of their major products, the30−gallonheavy−dutyplastic container. Budgeted quantityBudgeted

Labor efficiency variance represents how efficiently the labor has been utilized in accordance with…

Answered: Genent Industries, Inc. (GII),…

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter9: Standard Costing: A Functional-based Control Approach

Section: Chapter Questions

Problem 20E: Jameson Company produces paper towels. The company has established the following direct materials...

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Genent Industries, Inc. (GII), developed standard costs for direct material and direct labor. In 2017, GII estimated the following standard costs for one of their major products, the

30−gallon

heavy−duty

plastic container.

	Budgeted quantity	Budgeted price
Direct materials	0.40 pounds	$50 per pound
Direct labor	0.50 hours	$11 per hour

During July, GII produced and sold 4,000 containers using 1,750 pounds of direct materials at an average cost per pound of $48 and 2,090 direct manufacturing labor hours at an average wage of $11.30 per hour.

The direct manufacturing labor efficiency variance during July is ________.

Definition Definition System of assigning an estimated cost to the product (instead of the actual cost) so that the product cost can be determined well in advance and the pricing of the product can be done on time. Since the actual cost cannot be predicted at the initial stage of the production process, the estimated cost is recorded in the books. Any deviation of the estimated cost of the actual cost is adjusted in the books at the end of the period.

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