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The exercise presented is related to standard costing and variance analysis, specifically the material efficiency variance (or usage variance). Let’s break down the details and formula provided to solve the problem:

**Given:**
- **Real Costs:** 21,000 lbs at $10.00 = $210,000
- **Standard Costs:** 25,000 lbs at $10.15 = $253,750

**Formula for efficiency variance (VF):**
\[ \text{VF} = (\text{Quantity Std} - \text{Quantity Real}) \times \text{Price Std} \]

Where:
- **Quantity Std** is the standard quantity (25,000 lbs).
- **Quantity Real** is the actual quantity used (21,000 lbs).
- **Price Std** is the standard price ($10.15).

### Step-by-step calculation:

1. **Calculate the difference in quantity:**
   \[
   25,000 \, \text{lbs} - 21,000 \, \text{lbs} = 4,000 \, \text{lbs}
   \]

2. **Multiply the difference by the standard price:**
   \[
   4,000 \, \text{lbs} \times 10.15 = 40,600
   \]

3. **Interpret the result:**
   Since the actual quantity used (21,000 lbs) is less than the standard quantity (25,000 lbs), this is a **favorable** variance.

Thus, the correct answer is **D: $40,600 Favorable**.

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Let me know if you need further details or clarifications. Here are 5 related questions to explore:

1. How do price variances differ from efficiency variances in standard costing?
2. What are the advantages of analyzing variances in cost control?
3. How would the calculation change if the real quantity used was greater than the standard quantity?
4. Why is it important to compare real costs with standard costs in manufacturing?
5. What factors could lead to favorable material usage variances?

**Tip:** When analyzing variances, remember that "favorable" means less material or cost than expected, while "unfavorable" means more than expected.

Ejercicio de Variaciones o Desviaciones Estándares: Se tienen los costos reales y estándar para producir una cantidad del producto X, y se pide calcular la variación de eficiencia de estos materiales usando la fórmula: VF = (Cantidad STD - Cantidad Real) X Precio STD.

Learn how to calculate the material efficiency variance using standard costing formulas. This problem illustrates how to calculate variance by comparing standard and real quantities, and determining whether the variance is favorable or unfavorable.

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