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

---

Definitions:

Direct Ownership Interests

Ownership interest in an asset or entity without intermediaries, implying direct control or influence over the asset or entity.

Indirect Ownership Interest

A stake in a company or entity that is not held directly by the owner but through another vehicle, such as ownership of a parent company that owns the entity.

NCI Indirect Ownership Interest

Refers to the portion of equity in a subsidiary attributed to non-controlling interests, based on their indirect ownership stake.

Indirect Ownership Interests

Refers to a situation where an entity owns an interest in another entity through an intermediary rather than directly.