Previous Page Next Page Fage Question 14 (5 points) Optimum Co. uses a standard costing system in its Ruston Plant in which all inventory is carried at standard. The following standard costs data is provided for one of its products: Direct Materials 5 pounds @ $2.25 per pound Direct Labor 3 hours @ $9.00 per hour Optimum planned to produce 32,000 units each month. For April, the operating data show that 31,500 units of product were produced. During April, 160,000 pounds of materials were purchased at a price of $2.20 per pound. 159,000 pounds of material and 94,500 direct labor hours were used in production What is the amount of the direct material efficiency variance? $3,375 unfavorable $8,000 favorable $3,300 unfavorable $2,250 favorable Previous Page Next Page Page 14