Grayson Industries Has Collected the Following Data for One of Its

question 17

Multiple Choice

Grayson Industries has collected the following data for one of its products: $$\begin{array} { | l | l | } \hline \text { Direct materials standard (4 pounds per unit @ \$0.50/b.) } & \$ 2 \text { per finished good } \\\hline \text { Direct materials flexible budget variance-unfavorable } & \$ 10,000 \\\hline \text { Actual direct materials used } & 40,000 \text { pounds } \\\hline \text { Actual firished goods produced } & 24,000 \text { urits } \\\hline\end{array}$$
- How much is the direct materials efficiency variance?

• A)$38,000 favorable
• B)$4,000 unfavorable
• C)$4,000 favorable
• D)$38,000 unfavorable

---

Definitions:

Proactive

Acting preemptively to address a forthcoming scenario rather than simply reacting to situations as they occur.

Customer-Centered

An approach that focuses on creating a positive experience for the customer by understanding and meeting their needs.

Progressive

Pertaining to policies or ideas that aim for social improvement by advocating for change and reform, often focusing on fairness, equality, and innovation.

Empowered

Having the confidence, resources, and authority to make decisions and take actions in both personal and professional settings.