Luc Corporation Manufactures and Sells a Single Product

Multiple Choice

Luc Corporation manufactures and sells a single product. The company uses units as the measure of activity in its budgets and performance reports. During February, the company budgeted for 5,000 units, but its actual level of activity was 4,950 units. The company has provided the following data concerning the formulas used in its budgeting and its actual results for February:
-The spending variance for direct materials in February would be closest to:

A) $3,450 F
B) $2,525 U
C) $3,450 U
D) $2,525 F