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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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