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 theyear, direct materials and direct labor standards for one of their popular products were asfollows:

Directmaterials: 1 pound perunit; $12 per pound

Directlabor: 4 hours perunit; $19 per hour

Allen produced 1,000 units during the quarter. At the end of thequarter, an examination of the direct materials records showed that the company used 6,500 pounds of direct materials and actual total materials costs were $99,600.

What is the direct materials efficiencyvariance?

A. $12,000 F

B. $66,000 F

C. $66,000 U

D. $12,000 U

Home Decor Company manufactures special metallic materials for luxury homes that require highly skilled labor. Home Decor uses standard costs to prepare its flexible budget. For the first quarter of theyear, direct materials and direct labor standards for one of their popular products were asfollows:

Directmaterials: 3 pounds perunit; $3 per pound

Directlabor: 4 hours perunit; $16 per hour

Home Decor produced 4,000 units during the quarter. At the end of thequarter, an examination of the labor costs records showed that the company used 25,000 direct labor hours and actual total direct labor costs were $375,000. What is the direct labor costvariance? (Round any intermediate calculations to the nearestcent, and your final answer to the nearestdollar.)

A. $256,000 Unfavorable

B. $25,000 Unfavorable

C. $25,000 Favorable

D. $256,000 Favorable