Allen Boating Company manufactures special metallic materials and decorative fittings for luxury yachts that require highly skilled labor. Allen uses standard costs to prepare its flexible budget. For the first quarter of the​ year, direct materials and direct labor standards for one of their popular products were as​ follows:
Direct​ materials: 2 pound per​ unit; $12 per pound
Direct​ labor: 4 hours per​ unit; $16 per hour
Allen produced 1,000 units during the quarter. At the end of the​ quarter, an examination of the direct materials records showed that the company used 7,500 pounds of direct materials and actual total materials costs were $99,300.
What is the direct materials efficiency​ variance?
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Part 1
A.
$12,000 F
B.
$66,000 U
C.
$12,000 U
D.
$66,000 F