Figure 10-3

Multiple Choice

Figure 10-3. Bortello Corporation produces high-quality leather boots.The company has a standard cost system and has set the following standards for materials and labor:
During the year Bortello produced 125 boots.Actual leather purchased was 1,700 strips,at $16 per strip.There were no beginning or ending inventories of leather.Actual direct labor was 1,500 hours at $15 per hour.
Refer to Figure 10-3.Compute the materials price variance and the materials usage variance,respectively.

A) $9,000 F and $1,200 U
B) $9,300 U and $1,500 F
C) $6,800 F and $4,000 U
D) $6,800 U and $4,000 F