irect materials stand Is stanc irect materials flexib otual direct materiel

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Question 4

Devon Company has collected the following data for one of its products:
Direct materials standard (4 pounds @ $1/b.)
Direct materials flexible budget variance-unfavorable
$4 per unit
$15,500
100,000 pounds
Actual direct materials used
Actual units produced
18,000 units
What is the direct materials efficiency variance?
O A. $28,000 U
O B. $18,000 F
OC. $28,000 F
O D. $18,000 U
Transcribed Image Text:Devon Company has collected the following data for one of its products: Direct materials standard (4 pounds @ $1/b.) Direct materials flexible budget variance-unfavorable $4 per unit $15,500 100,000 pounds Actual direct materials used Actual units produced 18,000 units What is the direct materials efficiency variance? O A. $28,000 U O B. $18,000 F OC. $28,000 F O D. $18,000 U
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