Question & Answer: Melissa Antiques Company has collected the following data for one of its​ products: Direct materials stan…..

2) Melissa Antiques Company has collected the following data for one of its​ products: Direct materials standard​ (4 pounds​ @ 1/lb.) ​$4 per unit Direct materials flexible budget variancelong dash—unfavorable ​$14,500 Actual direct materials used ​100,000 pounds Actual units produced ​19,000 units What is the direct materials efficiency​ variance?

Expert Answer

 

Direct materials efficiency​ variance = ( Standard quantity for actual production – Actual Quantity ) * Standard rate

= ( 19000 * 4 – 100000 ) * 1 = $ 24000 ( unfavourable )

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