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 x $12.00 per kilogram) = $60.00/unit.Direct labor (3.5 hours x $20.00 per hour) = $70.00/unit.All materials were 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 is:
A) $1,800 unfavorable.
B) $1,800 favorable.
C) $59,400 unfavorable.
D) $59,400 favorable.
Correct Answer:
Verified
Correct Answer:
Verified
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