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 2,700 pounds of direct materials at an average cost per pound of $19 and 1,290 direct manufacturing labor hours at an average wage of $14.30 per hour.
The direct manufacturing labor flexible-budget variance during July is ________.

A) $1,260.00 unfavorable
B) $900.00 favorable
C) $1,647.00 unfavorable
D) $3,300.00 favorable