Diaz Company Has Developed the Following Standards for One of Its

Multiple Choice

Diaz Company has developed the following standards for one of its products: $\begin{array}{ll}\text { Direct materials } & 3.50 \text { pounds } \times \$ 4 \text { per pound } \\\text { Direct labor } & 1 \text { hour } \times \$ 12 \text { per hour } \\\text { Variable manufacturing overhead } & 1 \text { hour } \times \$ 6 \text { per hour }\end{array}$

$\text { The following activity occurred during the month of April: }$

$\begin{array}{ll}\text { Materials purchased } & 2,000 \text { pounds costing } \$ 22,500 \\\text { Materials used } & 1,600 \text { pounds } \\\text { Units produced } & 250 \text { units } \\\text { Direct labor } & 550 \text { hours at } \$ 12.50 \text { per hour } \\\text { Actual variable manufacturing overhead: } & \$ 2,500\end{array}$ The company records materials price variances at the time of purchase.
The total variable standard cost is:

A) $31,875.
B) $6,000.
C) $8,000.
D) $15,500.