Podcaster University Press Uses a Standard Costing System for All

Multiple Choice

Podcaster University Press uses a standard costing system for all its book production. The standard paper usage for the Accounting Standards Book is 600 sheets at a cost of £1.20 for 500 sheets. Budgeted production of the Accounting Standards book is 5,000 copies per annum. During the financial year ended 31 December 2018, Podcaster University Press printed 5,500 copies of the Accounting Standards book, using a total of 3,600,000 sheets of paper at a cost of £1.25 per 500 sheets. Based on the above information, what is the direct material usage variance for the Accounting Standards book in the year ended 31 December 2018?

A) £360 Unfavourable
B) £720 Unfavourable
C) £750 Unfavourable
D) £1,080 Unfavourable