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Jackson Corporation Produced 1,000 Units of a Product in 2017

Question 98

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Jackson Corporation produced 1,000 units of a product in 2017 that required 25,000 pounds of material. The price for the material was $3.00 per pound in 2017 and $3.25 in 2016 . Jackson's cost accountant has estimated that to produce the same 1,000 units in 2016 would have required 29,700 pounds of material. What was the cost effect of productivity for materials?


A) $15,275 F
B) $14,100 F
C) $14,100 U
D) $15,275 U

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