Production records indicate that the actual amount of direct materials used in last month's production totaled 52,000 pounds at $ 5.25 per pound to produce 10,000 units. Engineering standards indicate that five (5) pounds is required of direct materials for each unit of product that is finished at $ 5.00 per pound.

How much does the efficiency variance total?

a. $ 13,000 favorable

b. $ 10,000 favorable

c. $ 10,000 unfavorable

d. $ 13,000 unfavorable

Using the information in the previous question, determine the variation in price (price variance) a. $ 13,000 unfavorable b. $ 13,000 favorable c. $ 10,000 favorable d. $ 10,000 unfavorable