The Reynolds Company Makes Tables for Which the Following Standards

Multiple Choice

The Reynolds Company makes tables for which the following standards have been developed: $$\begin{array} { l l l } & \text { Standard Inputs } & \text { Standard Price } \\& \text { Expected for E ach } & \text { Expected per } \\& \text { Unit of Output } & \text { Unit of Output } \\\text { Direct materials } & \text { 10 pounds } & \$ 4 \text { per pound } \\\text { Direct labor } & 3 \text { hours } & \$ 16 \text { per hour }\end{array}$$ Production of 230 tables was expected in July, but 250 tables were actually completed. Direct materials purchased and used were 2,200 pounds at an actual price of $4.40 per pound. Direct labor cost for the month was $10,620, and the actual pay per hour was $18.00. _ is the direct- material price variance for July.

A) $800 favorable
B) $880 unfavorable
C) $800 unfavorable
D) $880 favorable