Allen boating company manufactures special metallic materials and decorative fittings for luxury yachts that require highly skilled labor. allen uses standard costs to prepare its flexible budget. for the first quarter of the year, direct materials and direct labor standards for one of their popular products were asfollows:
direct materials: 11 pound per unit; $12 per pound
direct labor: 22 hours per unit; $18 per hour allen produced 2,000 units during the quarter. at the end of the quarter, an examination of the direct materials records showed that the company used 6,500 pounds of direct materials and actual total materials costs were $ 98 comma 400$98,400. what is the direct materials efficiency variance?
a. $54,000 f
b. $54,000 u
c. $ $24,000 f
d. 24,000 u
Answers: 2
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