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the direct materials efficiency variance for january 594034

The direct materials efficiency variance for January is

  1. $500 U
  2. $500 F
  3. $750 F
  4. $750 U

A company makes bulk cookies sold in restaurants. The following standards have been developed:

Standard Inputs for Each batch of cookies

Standard price per input

Direct materials

25 kilograms

$2 per kilogram

Direct labour

4 hours

$15 per hour

Each batch of cookies contains 1,000 cookies. During January, production of 100,000 cookies was planned, but 105,000 cookies were actually made. At an actual price of $2.15 per kilogram, 2,250 kilograms of direct materials were purchased and used. The total direct labour cost for the month was $5,600, and the actual pay per hour was $14.00.

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