Efficient Corporation Uses a Standard Cost System ? the Direct Materials Cost Variance Is:
A) $1,125 Favorable

question 66

Multiple Choice

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

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

---

Definitions:

Pitocin

A synthetic form of oxytocin used to induce labor by stimulating uterine contractions or to reduce bleeding after childbirth.

Dopamine Infusion

The administration of dopamine via an intravenous line to treat certain conditions, such as low blood pressure or heart failure.

DE-style Equations

Differential Equation-style equations; mathematical equations that relate functions with their derivatives, often used in modeling.

Infusion Rates

The speed at which a drug or substance is administered intravenously, typically measured in ml/hr (milliliters per hour).