Last Month, Investly Widgets Purchased 16,400 Pounds of Material and Used

Multiple Choice

Last month, Investly Widgets purchased 16,400 pounds of material and used 16,600 pounds in the production of 4,200 widgets.The actual cost per pound of the material was $7.80 and the standard price was $7.75 per pound.The company budgeted 4,500 widgets for production.How much is the material quantity variance?

A) $820 unfavorable
B) $730 favorable
C) $1,550 favorable
D) More information is needed to determine the answer.