Thomas Company Produces One Product, the E4501

Multiple Choice

Thomas Company produces one product, the E4501.The standards for E4501 include the use of 25 yards of raw material at a standard price of $4.42 per yard.During a recent month, the company used 65,000 yards of raw material to produce 2,580 units of E4501.Thomas purchased this material at a cost of $4.37 per yard.How much is the material quantity variance?

A) $2,185 unfavorable
B) $2,185 favorable
C) $2,210 unfavorable
D) $3,225 favorable