The Following Data Pertains to the Direct Materials Cost for the Month

question 152

Multiple Choice

The following data pertains to the direct materials cost for the month of October:
$$\begin{array} { l l } \text { Standard costs } & 5,000 \text { units allowed at } \$ 20 \text { each } \\\text { Actual costs } & 5,050 \text { units input at } \$ 19 \text { each }\end{array}$$ What is the direct materials efficiency variance?

• A) $950 favorable
• B) $950 unfavorable
• C) $1,000 favorable
• D) $1,000 unfavorable

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Definitions:

Motivator

A factor that stimulates an individual to act in a certain way or pursue a particular goal, often leading to enhanced performance or behavior.

Restriction of Productivity

Limitations or constraints that decrease the efficiency or output of a process, system, or individual's work.

Piece Rate Pay

A compensation system where employees are paid based on the amount of work they complete rather than the hours worked.

Hourly Wage

Compensation paid to an employee based on the number of hours worked.