Armstrong Corporation manufactures bicycle parts. The company currently has a 19,500 inventory of parts that have become obsolete due to changes in design specifications. The parts could be sold for 7,000, or modified for 10,000 and sold for 20,300.

How much is the total SUNK COST?

Group of answer choices

29,500

19,500

0

26,500

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The Koski Company has established standards as follows:

Direct material	3 pounds @ 4/pound = 12 per unit
Direct labor	2 hours @ 8/hour = 16 per unit
Variable overhead	2 hours @ 5/hour = 10 per unit

Actual production figures for the past year were as follows:

Units produced	500
Direct material used	1,600 pounds
Direct material purchased	3,000 pounds, 12,300
Direct labor cost	950 hours, 7,790
Variable overhead cost incurred	950 hours, 4,655

The materials price variance is __________________ .

Group of answer choices

6,300 U

300 U

150 U

160 U