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?

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