Melissa Company Has Collected the Following Data for One of Its

question 164

Multiple Choice

Melissa Company has collected the following data for one of its products: $\begin{array}{|l|r|}\hline\text { Direct materials standard (5 pounds @ } \$ 1 / \mathrm{lb} \text {.) } & \$ 5 \text { per finished good } \\\hline \text { Direct materials flexible budget variance-unfavorable } & \$ 14,000 \\\hline \text { Actual direct materials used } & 100,000 \text { pounds } \\\hline \text { Actual finished goods produced } & 18,000 \text { units }\\\hline\end{array}$ How much is the direct materials efficiency variance?

• A) $18,000 U
• B) $10,000 F
• C) $10,000 U
• D) $18,000 F

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Definitions:

Sensing

The process of gathering information through the five senses – sight, hearing, touch, smell, and taste – which enables individuals to understand and interact with their environment.

Recipient's End

The final destination or the party who receives a message, parcel, or transaction.

Interpretation

The act of explaining or understanding the meaning of something, such as a text, action, or event.

Recipient's End

The final destination or the target audience for a message, document, or package.