Gutierrez Company Budgeted 10,000 Kilograms of Direct Materials Costing $21

question 206

Multiple Choice

Gutierrez Company budgeted 10,000 kilograms of direct materials costing $21.50 per kilogram to make 5,000 units of product. The company actually purchased and used 10,200 kilograms of direct materials costing $24.00 per kilogram to make the 5,000 units.
-What is the direct materials efficiency variance at the Gutierrez Company?

• A) $4,300 favourable
• B) $4,800 favourable
• C) $4,300 unfavourable
• D) $4,800 unfavourable

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