Answer:
Direct materials efficiency variance = 1175 unfavorable
so correct option is C) $1,175 unfavorable
Explanation:
given data
actual cost = $10.50 per pound
standard cost per pound = $11.75
current period = 10,000 pounds
purchased = 11,500 pounds
actual units produced = 9,900 pounds
to find out
direct materials efficiency variance
solution
we get here Direct materials efficiency variance that is express as
Direct materials efficiency variance = Standard rate × ( Standard quantity - Actual quantity ) ..................1
put here value in equation 1 and we get
Direct materials efficiency variance = 11.75 × ( 10000 - 9900 )
Direct materials efficiency variance = 11.75 × 100
Direct materials efficiency variance = 1175 unfavorable
so correct option is C) $1,175 unfavorable
