Devon Company has collected the following data for one of its products:

What is the direct materials efficiency variance?

Question

Devon Company has collected the following data for one of its products:

What is the direct materials efficiency variance?

Quizplus · Accepted Answer

C)
Direct materials efficiency variance = (Actual quantity - Standard quantity)× Standard cost
Direct materials efficiency variance = [103,000 pounds - (4 pounds × 22,000 units)] × $1 per pound = (103,000 pounds - 88,000 pounds)× $1 per pound
Direct materials efficiency variance = $15,000 Unfavorable

Devon Company Has Collected the Following Data for One of Its