Craydye Makes All Sorts of Moldings

Multiple Choice

Craydye makes all sorts of moldings.Its standard quantity of material allowed is 1 foot of wood per 1 foot of molding at a standard price of $3.00 per foot.During August, it purchased 200,000 feet of wood at a cost of $2.00 per foot, which produced only 199,000 feet of molding.Calculate the materials price variance and the materials usage variance.

A) $400,000 F and $1,000 U
B) $600,900 U and $2,500 F
C) $700,000 U and $4,000 F
D) $200,000 F and $3,000 U