the direct materials efficiency variance for january 594034
The direct materials efficiency variance for January is
- $500 U
- $500 F
- $750 F
- $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.