Answer the Following Questions Using the Information Below:
Hunter Valley

question 131

Multiple Choice

Answer the following questions using the information below:
Hunter Valley Orchards (HVO) ,developed standard costs for direct material and direct labour.In 2018,HVO estimated the following standard costs for one of their most well-loved products,the HVO classic Grandma's large apple pie which had a brown sugar coating on the top of the crust as well as including cranberry and mince ingredients in addition to the apples.
$$\begin{array} { l l l } & \text { Budgeted quantity } & \text { Budgeted price } \\\text { Direct materials } & 1.5 \mathrm {~kg} & \$ 7.25 \text { per } \mathrm { kg } \\\text { Direct labour } & 0.25 \text { hours } & \$ 14.00 \text { per hour }\end{array}$$ During September,HVO produced and sold 1200 pies using 1875 kg of direct materials at an average cost per kg of $7.00 and 280 direct labour hours at an average wage of $14.25 per hour.
-September's direct material efficiency variance is:

• A)$468.75 favourable.
• B)$543.75 favourable.
• C)$468.75 unfavourable.
• D)$543.75 unfavourable.

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