Keep It Safe, Inc

Multiple Choice

Keep It Safe, Inc., manufactures a popular protective case for mobile telephones. Each case requires 0.5 grams of a titanium alloy to provide necessary strength. The standard price of the alloy is $100 per gram. In the most recently concluded month, Keep It Safe purchased and used 2,000 grams of the alloy to produce 3,800 cases. The total cost of the alloy purchased was $210,000. What was the material usage variance for the month?

A) $10,500 Favorable.
B) $10,500 Unfavorable.
C) $10,000 Unfavorable.
D) $10,000 Favorable.