??! Granite Industries, Inc. (GII) developed standard costs for direct materials and directlabor. In 2021, GII estimated the following standard costs for one of their major products,the 45-gallon heavy-duty plastic container.Budgeted quantity Budgeted priceDirect materials 0.3 poundsDirect labor 0.5 hours$40 per pound$18 per hourDuring August, GII produced and sold 5,000 containers using 1,700 pounds of directmaterials at an average cost per pound of $42 and 2,700 direct manufacturing labor hoursat an average wage of $17.75 per hour.The direct manufacturing labor efficiency variance during August is:a. $1,800 unfavorableb. $1,900 unfavorablec. $1,500 unfavorabled. $3,600 unfavorable

Explanation of Direct Manufacturing Labor Efficiency Variance:The Direct Manufacturing Labor…

Answered: Granite Industries, Inc. (GII)…

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter9: Evaluating Variances From Standard Costs

Section: Chapter Questions

Problem 3E: Salisbury Bottle Company manufactures plastic two-liter bottles for the beverage industry. The cost...

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Sawyer Industries, Inc. (SII), developed standard costs for direct material and direct labor. In 2023, SII estimated the following standard costs for one of their major products, the 30-gallon heavy-duty plastic container. Budgeted quantity Budgeted price Direct materials 0.20 pounds $25 per pound Direct labor 0.10 hours $15 per hour During July, SII produced and sold 5,000 containers using 1,100 pounds of direct materials at an average cost per pound of $24 and 525 direct manufacturing labor hours at an average wage of $14.75 per hour. July's direct material flexible-budget variance is: A) $1,400 unfavorable B) $21,100 favorable C) $2,500 unfavorable D) None of these answers are correct.…

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