Use the following information to answer the following Questions
The following data relates to Koontz Corporation's operations for the month. 1,000 finished units of product were produced and the normal monthly capacity is 2,200 direct labor hours.

-What is the materials efficiency variance?
A) $1,960 U
B) $1,960 F
C) $2,000 U
D) $2,000 F
E) None of the above

Question

Use the following information to answer the following Questions 
 The following data relates to Koontz Corporation's operations for the month. 1,000 finished units of product were produced and the normal monthly capacity is 2,200 direct labor hours.
 
-What is the materials efficiency variance?
A) $1,960 U 
B) $1,960 F 
C) $2,000 U 
D) $2,000 F 
E) None of the above

Quizplus · Accepted Answer

SP (AQ-SQ) = $10.00 x (2,200 - 2,000*) = $2,000 U
*(1,000 finished units of product x 2 lbs. material / unit = 2,000 lbs.)

Use the Following Information to Answer the Following Questions