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Straton Company Produces One Product, the H2001

Question 23

Multiple Choice

Straton Company produces one product, the H2001.Each unit of H2001 requires 6.5 pounds of raw material with a standard cost of $12.00 per pound.During July, Straton purchased 3,500 pounds of this raw material at a price of $12.25 per pound and used 3,280 pounds to produce 500 units of the H2001.How much is the material price variance?


A) $3,000 unfavorable
B) $360 unfavorable
C) $875 unfavorable
D) $820 unfavorable

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