Gutierrez Company budgeted 10,000 kilograms of direct materials costing $21.50 per kilogram to make 5,000 units of product. The company actually purchased and used 10,200 kilograms of direct materials costing $24.00 per kilogram to make the 5,000 units.
-What is the direct materials efficiency variance at the Gutierrez Company?

Question

Quizplus · Accepted Answer

C) Mat'l efficiency var = (Actual quantity - (Std price × actual units) × Std price
$4,300 Unfavourable = (10,200 - 10,000) × 21.50

Gutierrez Company Budgeted 10,000 Kilograms of Direct Materials Costing $21