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Journal Entry for Direct Materials Variance

Journal Entry for Direct Materials Variance

In the current year, Mission Burrito budgeted 6,000 pounds of production and actually used 4,000 pounds. Material cost was budgeted for $5 per pound and the actual cost was $8 per pound. What would the debit or credit to the direct material efficiency variance account be for the current year?

A) Debit to direct material efficiency variance for $10,000

B) Credit to direct material efficiency variance for $10,000

C) Debit to direct material efficiency variance for $12,000

D) Debit to direct material efficiency variance for $12,000