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 1,000 pounds of direct materials at an average cost per pound of $37 and 475 direct manufacturing labor hours at an average wage of $18.75 per hour.
The direct material efficiency variance during July is ________.

A) $5,000 unfavorable
B) $7,400 favorable
C) $8,000 unfavorable
D) $5,000 favorable