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Stone Lamps Company Produces Lamps with Granite Bases

Question 144

Multiple Choice

Stone Lamps Company produces lamps with granite bases. The standard material cost for the granite used in each lamp is $20 per square metre. Each lamp requires 2 square metres of granite. In November, the company produced 500 lamps. There were 1,150 square metres of granite used during the month. The granite used had an actual cost $22 per square metre. What was the materials efficiency (quantity) variance in November for granite?


A) $3,000 favourable
B) $3,000 unfavourable
C) $3,300 favourable
D) $3,300 unfavourable

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