Perez, Inc

Multiple Choice

Perez, Inc. recently completed 56,000 units of a product that was expected to consume four pounds of direct material per finished unit. The standard price of the direct material was $8.50 per pound. If the firm purchased and consumed 228,000 pounds in manufacturing (cost = $1,881,000) , the direct-material quantity variance would be figured as:

A) $34,000U.
B) $34,000F.
C) $57,000U.
D) $57,000F.
E) None of the answers is correct.