The following information describes Benji's Security Services usage of direct labour in a recent period:

-The actual cost of direct materials is $11.70 per kilogram. The standard cost per kilogram is $11.50. During the current period, 8,200 kilograms of direct materials were used in production and 18,300 kilograms were purchased. The standard quantity of direct materials for actual units produced is 18,100 kilograms. How much is the direct materials efficiency variance?

Question

The following information describes Benji's Security Services usage of direct labour in a recent period:
 
-The actual cost of direct materials is $11.70 per kilogram. The standard cost per kilogram is $11.50. During the current period, 8,200 kilograms of direct materials were used in production and 18,300 kilograms were purchased. The standard quantity of direct materials for actual units produced is 18,100 kilograms. How much is the direct materials efficiency variance?

Quizplus · Accepted Answer

A) Mat'l efficiency var = (Actual quantity - (Std price × actual units)) × Std price
$113,850 F = (8,200 - 18,100 ) × $11.50

The Following Information Describes Benji's Security Services Usage of Direct