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The Cheeseman Company Makes Tables and the Following Standards Have

Question 119

Multiple Choice

The Cheeseman Company makes tables and the following standards have been developed:
 Standard Inputs Expected  Standard Price  Expected  For Each Unit of Output  Per Unit of Input  Direct Materials 10 ounces $4 per ounce  Direct Labor 3 hours $16 per hour \begin{array}{lll}&\text { Standard Inputs Expected }&\text { Standard Price }\\\text { Expected }&\text { For Each Unit of Output }&\text { Per Unit of Input }\\\hline\text { Direct Materials } & 10 \text { ounces } & \$4 \text { per ounce } \\\text { Direct Labor } & 3 \text { hours } & \$ 16 \text { per hour }\end{array}
Production of 230 tables was expected in July,but 250 tables were actually completed.Direct materials purchased and used were 2,200 pounds at an actual price of $4.50 per pound.Direct labor cost for the month was $10,620,and the actual pay per hour was $18.00.What is the direct material price variance for July?


A) $800 Favorable
B) $800 Unfavorable
C) $1,100 Favorable
D) $1,100 Unfavorable

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