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  3. 1. the budget for the month of may was for 13,600

1. The budget for the month of May was for 13,600 units at a direct...

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Accounting

1. The budget for the month of May was for 13,600 units at a direct materials cost of $25 per unit. Direct labor was budgeted at 34 minutes per unit for a total of $122,400. Actual output for the month was 9,500 units with $152,500 in direct materials and $87,775 in direct labor expense. The direct labor standard of 34 minutes was obtained throughout the month. Variance analysis of the performance for the month of May would show a(n): (CMA adapted)

A. unfavorable direct labor efficiency variance of $2,275.

B. favorable direct labor efficiency variance of $2,275.

C. unfavorable direct labor price (rate) variance of $2,275.

D. favorable materials efficiency (quantity) variance of $8,500.

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