Genent Industries, Inc

Multiple Choice

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 1,700 pounds of direct materials at an average cost per pound of $15 and 3,225 direct manufacturing labor hours at an average wage of $15.25 per hour.
The direct material price variance during July is ________.

A) $20,000 unfavorable
B) $8,500 favorable
C) $8,500 unfavorable
D) $2,000 unfavorable