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Devon Company has collected the following data for one of its​ products: Direct materials standard​ (4 pounds​ @ $1/lb.) ​$4 per unit Direct materials flexible budget variancelong dash—unfavorable ​$15,000 Actual direct materials used ​103,000 pounds Actual units produced ​22,000 units What is the direct materials efficiency​ variance?

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Answer:

Instructions are listed below.

Explanation:

Giving the following information:

Direct materials standard​ (4 pounds​ @ $1/lb.) ​$4 per unit

Direct materials flexible budget variance—unfavorable ​$15,000

Actual direct materials used ​103,000 pounds

Actual units produced ​22,000 units

Direct material quantity variance= (standard quantity - actual quantity)*standard price

Direct material quantity variance= (22,000*4 - 103,000)*1= $15,000 unfavorable

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