Shade Company Adopted a Standard Cost System Several Years Ago

Multiple Choice

Shade Company adopted a standard cost system several years ago. The standard costs for direct labor and direct materials for its single product are as follows: Materials (5 kilograms × $12.00/kilogram) = $60.00/unit; direct labor (3.5 hours/unit × $20.00/hour) = $70.00/unit. All materials are issued at the beginning of processing. The operating data shown below were taken from the records for December: The direct materials usage variance for December, to the nearest dollar, was:

A) $1,800 unfavorable.
B) $1,800 favorable.
C) $59,400 unfavorable.
D) $59,400 favorable.