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Efficient Corporation uses a standard cost system. The following information was provided for the period that just ended: Actual price per gallon $11.75 Actual gallons
Efficient Corporation uses a standard cost system. The following information was provided for the period that just ended:
Actual price per gallon | $11.75 |
Actual gallons of material used | 5,000 |
Actual hourly labor rate | $17.00 |
Actual hours of production | 24,300 |
Standard price per gallon | $12.00 |
Standard gallons per completed unit | 1/2 |
Standard hourly labor rate | $12.00 |
Standard time per completed unit | 3 hrs. |
Units completed during the period | 9,000 |
The direct materials cost variance is _____.
a.$1,125 favorable
b.$7,125 unfavorable
c.$6,000 unfavorable
d.$4,750 unfavorable
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