C & H Corp. uses a standard cost system, manufactured 18,000 bumper cars during 2021 using 148,000 square feet of rubber purchased at $1.05 per square foot. Production required 402 direct labor hours costing $15 per hour. The direct materials standard was 7 square feet of rubber per car, at a cost of 1.15 per square foot. The labor standard was 0.025 direct labor hours per car, at a standard cost of $11. Calculate the direct materials efficiency variance.
C & H Corp. uses a standard cost system, manufactured 18,000 bumper cars during 2021 using 148,000 square feet of rubber purchased at $1.05 per square foot. Production required 402 direct labor hours costing $15 per hour. The direct materials standard was 7 square feet of rubber per car, at a cost of 1.15 per square foot. The labor standard was 0.025 direct labor hours per car, at a standard cost of $11. Calculate the direct materials efficiency variance.
Chapter1: Financial Statements And Business Decisions
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Calculate the direct materials efficiency variance.
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