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 30minus−gallon heavyminus−duty plastic container. Budgeted quantity Budgeted price Direct materials 0.10.1 pounds $ 30$30 per pound Direct labor 0.30.3 hours $ 16$16 per hour During​ July, GII produced and sold 4 comma 0004,000 containers using 700700 pounds of direct materials at an average cost per pound of $ 29$29 and 1 comma 2801,280 direct manufacturing labor hours at an average wage of $ 16.25$16.25 per hour. The direct manufacturing labor flexibleminus−budget variance during July is​ ________.

Answer 1

direct manufacturing labor flexible−budget variance during July is​ $1,600 Unfavorable

Working

Labor Spending Variance
(	Standard Cost	-	Actual Cost	)
(	$         19,200.00	-	$             20,800.00	)
	-1600
	Variance		$                1,600.00			Unfavourable-U

.

Actual DATA for		4000	Units
	Quantity (AQ)	Rate (AR)	Actual Cost
Direct labor	1280	$         16.25	$          20,800.00

.

Standard DATA for		4000	Units
	Quantity (SQ)	Rate (SR)	Standard Cost
	[A]	[B]	[A x B]
Direct labor	( 0.3 Hour x 4000 Units)=1200 Hour	$                16.00	$            19,200.00