Lingard Company uses a standard costing system in its Westin Plant in which all inventory is carried as standard. The following standard costs data is provided for one its products:
Direc Materials - 5 pounds @ 2.25 per pound
Direct Labor - 3 hours @ 9.00 per hour
Lingard planned to produce 32,000 units each month. For April the operating data show that 31,500 units of product were produced. During April, materials were purchased at a price of $2.20 per pound. 159,000 pounds of material and 94,500 direct labor hours were used in production.
What is the amount of the direct material efficiency variance ?
A) $2,250 favorable
B) $8,000 favorable
C)$ 3,375 unfavorable
D)$ 3,300 unfavorable
The solution is... View the full answer