The Frosty Company Makes Mugs for Which the Following Standards

Multiple Choice

The Frosty Company makes mugs for which the following standards have been developed: $$\begin{array} { l l l } & \text { Standard Inputs } & \text { Standard Price } \\& \text { Expected for Each } & \text { Expected per } \\& \text { Unit of Output } & \text { Unit of Output } \\\text { Direct materials } & 5 \text { ounces } & \$ 2 \text { per ounce } \\\text { Direct labor } & \text { 1.5 hours } & \$ 8 \text { per hour }\end{array}$$ Production of 400 mugs was expected in July, but 440 mugs were actually completed. Direct materials purchased and used were 2,100 ounces at an actual price of $2.20 per ounce. Direct labor cost for the month was $5,310, and the actual pay per hour was $9.00. _ is the direct- material usage variance for July.

A) $220 favorable
B) $220 unfavorable
C) $200 unfavorable
D) $200 favorable