The materials efficiency variance is unfavorable because the amount of XBEZ52 actually consumed in manufacturing was greater than the standard quantity.
The materials efficiency variance is calculated as (AQ ? SQ) × SP. This answer results from using the quantity of units purchased in the formula instead of the quantity consumed in manufacturing.
The efficiency variance is calculated as (AQ ? SQ) × SP. The actual quantity is 10,000. The standard quantity is 9,000 (3 units of part XBEZ52 to produce one radio multiplied by 3,000 radios that were manufactured). The standard price is $1.45 per part XBEZ52. Therefore, the materials efficiency variance is (10,000 ? 9,000) × $1.45 = $1,450 unfavorable.
The materials efficiency variance is unfavorable because the amount of XBEZ52 actually consumed in manufacturing was greater than the standard quantity. This answer is also incorrect because the quantity of units purchased was used in the formula instead of the quantity consumed in manufacturing.
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During May, Blaster Inc. incurred a materials efficiency variance of