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Efficient Corporation Uses a Standard Cost System Refer to the Information Provided for Efficient Corporation

Question 12

Multiple Choice

Efficient Corporation uses a standard cost system. The following information was provided for the period that just ended: $11.75 Actual price per gallon 5,000 Actual gallons of material used $17.00 Actual hourly labor rate 24,300 Actual hours of prochuction $12.00 Standard price per gallon 1/2 Standard gallons per completed urit $12.00 Standard hourly labor rate 3hrs. Standard time per completed urit 9,000 Units completed churingthe period \begin{array}{ll}\$ 11.75 & \text { Actual price per gallon } \\5,000 & \text { Actual gallons of material used } \\\$ 17.00 & \text { Actual hourly labor rate } \\24,300 & \text { Actual hours of prochuction } \\\$ 12.00 & \text { Standard price per gallon } \\1 / 2 & \text { Standard gallons per completed urit } \\\$ 12.00 & \text { Standard hourly labor rate } \\3 \mathrm{hrs} . & \text { Standard time per completed urit } \\9,000 & \text { Units completed churingthe period }\end{array} Refer to the information provided for Efficient Corporation. The direct materials cost variance is:


A) $1,125 favorable.
B) $4,750 unfavorable.
C) $6,000 unfavorable.
D) $7,125 unfavorable.

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