A company established its annual direct material budget to produce 300,000 units as follows. 150,000 pounds of material at $0.

A company established its annual direct material budget to produce 300,000 units as follows.

150,000 pounds of material at $0.75 per pound = $112,500

• Throughout the year, the company produced 310,000 units of finished goods using 0.48 pounds per unit at a cost of $0.76 per pound. The direct material efficiency variance is A.
• $588 unfavorable.
• B.
• $1,488 unfavorable.
• C.
• $900 favorable.
• D.
• $4,650 favorable.