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

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

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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