Allen Boating Company manufactures special metallic materials and decorative fittings for luxury yachts that require highly skilled labor
Allen uses standard costs to prepare its flexible budget. For the first quarter of the year, direct materials and direct labor standards for one of their popular products were as follows:
Direct materials: 1 pound per unit; $11 per pound
Direct labor: 4 hours per unit; $19 per hour
Allen produced 4,000 units during the quarter. At the end of the quarter, an examination of the direct materials records showed that the company used 7,500 pounds of direct materials and actual total materials costs were $99,300.
What is the direct materials efficiency variance?
A) $44,000 U
B) $38,500 U
C) $44,000 F
D) $38,500 F
B .B) Direct materials efficiency variance = (Actual quantity - Standard quantity) x Standard cost
Direct materials efficiency variance = (7,500 pounds - 4,000 pounds) x $11 per pound = $38,500 Unfavorable
You might also like to view...
HR Scorecards can be used to diagnose
A. short-term organizational efficiency. B. long-term organizational efficiency. C. competitive strategic alignment. D. horizontal fit and vertical fit.
In a "living will" you transfer all of your assets to your heirs while you are still living
Indicate whether the statement is true or false
Cradle-to-grave is a community center that provides technology, manufacturing equipment, and educational opportunities to the public that would otherwise be inaccessible or unaffordable.
Answer the following statement true (T) or false (F)
What is business analytics?