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Education Products Company Gathered the Following Information for Job #155

Question 35

Multiple Choice

Education Products Company gathered the following information for Job #155:
 Standard Total Cost  Actual Total Cost  Direct materials:  Standard: 1,000 pints at $5/ pint $5,000 Actual: 1,160 pints at $6/ pint $6,960 Direct labor:  Standard: 500 hours at $7.50/hr$3,750 Actual: 480 hours at $7.25/hr.$3,480\begin{array} { | l | l | l | } \hline & \text { Standard Total Cost } & \text { Actual Total Cost } \\\hline \text { Direct materials: } & & \\\hline \text { Standard: } 1,000 \text { pints at } \$ 5 / \text { pint } & \$ 5,000 & \\\hline \text { Actual: } 1,160 \text { pints at } \$ 6 / \text { pint } & & \$ 6,960 \\\hline \text { Direct labor: } & & \\\hline \text { Standard: } 500 \text { hours at } \$ 7.50 / \mathrm { hr } & \$ 3,750 & \\\hline \text { Actual: } 480 \text { hours at } \$ 7.25 / \mathrm { hr } . & & \$ 3,480 \\\hline\end{array} What is the direct materials efficiency variance?


A) $960 unfavorable
B) $800 unfavorable
C) $960 favorable
D) $800 favorable

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