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.

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 ________.

Question

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.

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 ________.

Quizplus · Accepted Answer

Direct manufacturing labor efficiency variance = [2,090 dlh − (4,000 × 0.50)] × $11 = $990.00 U