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

What is the direct materials efficiency variance?

Question

Melissa Antiques 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 = [100,000 pounds - (4 pounds × 19,000 units)] × $1 per pound = (100,000 pounds - 76,000 pounds)× $1 per pound
Direct materials efficiency variance = $24,000 Unfavorable

Melissa Antiques Company Has Collected the Following Data for One