# Genent industries inc gii developed standard costs

• Test Prep
• 68
• 96% (674) 648 out of 674 people found this document helpful

This preview shows page 38 - 41 out of 68 pages.

##### We have textbook solutions for you!
The document you are viewing contains questions related to this textbook.
The document you are viewing contains questions related to this textbook.
Chapter 18 / Exercise 18-13
Accounting Using Excel for Success
Reeve/Warren
Expert Verified
15) 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. Budgeted quantity Budgeted price Direct materials 0.10 pounds \$30 per pound Direct labor 0.30 hours \$18 per hour During July, GII produced and sold 4,000 containers using 600 pounds of direct materials at an average cost per pound of \$26 and 1,290 direct manufacturing labor hours at an average wage of \$18.40 per hour. The direct manufacturing labor price variance during July is ________. A) \$1,620.00 unfavorable B) \$516.00 favorable C) \$480.00 favorable D) \$3,600.00 unfavorable Answer: Explanation: Direct manufacturing labor price variance = 1,290 dlh × (\$18.40 − \$18) = \$516.00 F B Diff: 2
Objective: 5 AACSB: Application of knowledge
##### We have textbook solutions for you!
The document you are viewing contains questions related to this textbook.
The document you are viewing contains questions related to this textbook.
Chapter 18 / Exercise 18-13
Accounting Using Excel for Success
Reeve/Warren
Expert Verified
16) 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. Budgeted quantity Budgeted price Direct materials 0.40 pounds \$50 per pound Direct labor 0.50 hours \$11 per hour During July, GII produced and sold 4,000 containers using 1,750 pounds of direct materials at an average cost per pound of \$48 and 2,090 direct manufacturing labor hours at an average wage of \$11.30 per hour. The direct manufacturing labor efficiency variance during July is ________. A Diff: 2
Objective: 5 AACSB: Application of knowledge 17) Mid City Products Inc. (MCP), developed standard costs for direct material and direct labor. In 2017, MCP estimated the following standard costs for one of their most popular products. Budgeted quantity Budgeted price Direct materials 1 pounds \$5.40 per pound Direct labor 0.50 hours \$13.00 per hour During September, MCP produced and sold 1,000 units using 1,300 pounds of direct materials at an average cost per pound of \$5.00 and 480 direct labor hours at an average wage of \$13.15 per hour. September's direct material flexible-budget variance is ________. C Diff: 2
Objective: 5 AACSB: Application of knowledge
18) Mid City Products Inc. (MCP), developed standard costs for direct material and direct labor. In 2017, MCP estimated the following standard costs for one of their most popular products. Budgeted quantity Budgeted price Direct materials 1 pounds \$8.60 per pound Direct labor 0.20 hours \$13.00 per hour During September, MCP produced and sold 1,000 units using 1,400 pounds of direct materials at an average cost per pound of \$8.00 and 160 direct labor hours at an average wage of \$13.50 per hour. The direct material price variance during September is ________. A Diff: 2
Objective: 5 AACSB: Application of knowledge