Annual direct material budget

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 = $112,500Throughout 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.

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