In: Accounting
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 ________.
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 |