Baldwin, Inc Uses a Standard Job Cost System and Purchased

Multiple Choice

Baldwin, Inc uses a standard job cost system and purchased 25,000 kg of material at $6 per kg, and used it all. The standard amount allowed for the output achieved is 22,500 kg, and the standard price is $6.50 per kg. The company also incurred 37,500 direct labour hours for $450,000. The standard hourly price was $11 per hour, and 39,000 hours were allowed at standard. Assuming all variances are immaterial, answer the following questions:
The entry to record the direct material efficiency variance will include a;

A) Debit to work in process inventory for $146,250
B) Credit to the efficiency variance for $16,250
C) Credit to the efficiency variance for $12,500
D) Credit to materials inventory for $150,000