A Company Makes a Product Using Two Materials,one of Which

Multiple Choice

A company makes a product using two materials,one of which is interchangeable with a third material.The standards for producing one 200-pound batch are presented below.The last 200-pound batch was produced using 140 pounds of M and 90 pounds of O.The price of M was $0.03 per pound and the actual price of O was $0.10. What is the materials yield variance?

A) $1.12.
B) $1.68.
C) $3.00.
D) $1.32.