Question
Beta Enterprise developed standard costs for direct material and direct labour. In 2021, Beta estimated the following standard costs for one of their major products,
Beta Enterprise developed standard costs for direct material and direct labour. In 2021, Beta estimated the following standard costs for one of their major products, BM100.
Budgeted quantity Budgeted price
Direct materials 0.71 pounds $70 per pound
Direct labour 0.26 hours $28.96 per hour
During April, Beta produced and sold 19230 units f the product using 14132 pounds of direct materials at an average cost per pound of $76 and 6978 direct manufacturing labour-hours at an average wage of $37.38 per hour.
The direct material efficiency variance during April is $________. (If the variance is unfavourable, present your answer as a negative (e.g., -100), if it is a favourable variance, present as it is (e.g., 100)). (Round your final answer to the nearest dollar.)
Step by Step Solution
3.41 Rating (151 Votes )
There are 3 Steps involved in it
Step: 1
As we know Direct material Efficien...Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started