Allan Company
Allan Company Manufactures Overalls The Company Required 600,000 M at $1

Multiple Choice

Allan Company
Allan Company manufactures overalls. During the year, it manufactured 125,000 overalls, using 2.9 hours of direct labour per unit at a rate of $6.25 per hour. The materials and labour standards for manufacturing the overalls are as follows: $\begin{array}{lll}\text {Direct materials ( \( 5 \mathrm{~m} \) of denim \( @ \$ 2 \) per metre) }&\$10\\\text {Direct labour (3 hours \( @ \$ 6 \) per }&18\\\end{array}$
The company required 600,000 m at $1.95 per metre to make the 125,000 overalls.There were no beginning or ending inventories.
-Refer to Allan Company. What is the materials usage variance?

A) $48,750 U
B) $48,750 F
C) $50,000 U
D) $50,000 F