Aquatic Marine Stores Company manufactures special metallic materials and decorative fittings for luxury yachts that require highly skilled labor. Aquatic uses standard costs to prepare its flexible budget. For the first quarter of theyear, direct materials and direct labor standards for one of their popular products were asfollows:

Directmaterials: 3 pounds perunit; $4 per pound

Directlabor: 4 hours perunit; $16 per hour

During the firstquarter, Aquatic produced 4,000 units of this product. Actual direct materials and direct labor costs were $67,000 and $327,000, respectively.

For the purpose of preparing the flexiblebudget, calculate the total standard direct materials cost at a production volume of 4,000 units.

A. $67,000

B. $12,000

C. $48,000

D. $16,000

Oceanside Marine Company manufactures special metallic materials and decorative fittings for luxury yachts that require highly skilled labor. Oceanside uses standard costs to prepare its flexible budget. For the first quarter of theyear, direct materials and direct labor standards for one of their popular products were asfollows:

Directmaterials: 1 pound perunit; $11 per pound

Directlabor: 2 hours perunit; $18 per hour

Oceanside produced 4,000 units during the quarter. At the end of thequarter, an examination of the direct materials records showed that the company used 7,500 pounds of direct materials and actual total materials costs were $99,300.

What is the direct materials costvariance? (Round any intermediate calculations to the nearestcent, and your final answer to the nearestdollar.)

A. $16,800 Favorable

B. $16,800 Unfavorable

C. $8,960 Unfavorable

D. $8,960 Favorable