Efficient Corporation Uses a Standard Cost System Refer to the Information Provided for Efficient Corporation

question 12

Multiple Choice

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

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

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Definitions:

Essential Features

Fundamental characteristics or qualities that are necessary for something to function or be recognized as it is.

Performance Commitments

Performance commitments are pledges or guarantees made by an individual or organization to achieve specified standards or results.

Corporate Governance

Corporate governance is the system of control and performance monitoring of top management.

Outside Directors

Board members who are not part of the company's day-to-day operations, providing independent, unbiased perspectives on governance and strategy.