Assume the following information appears in the standard cost card for a company that makes only one product:

During the most recent period, the following additional information was available:

• 21,000 pounds of material was purchased at a cost of $10.50 per pound.
• All of the material that was purchased was used to produce 3,900 units.
• 8,000 direct labor-hours were recorded at a total cost of $132,000.

What is the direct materials price variance?

Multiple Choice

a. $9,750 U

b. $9,750 F

c. $10,500 U

d. $10,500 F

DirectmaterialsDirectlaborVariablemanufacturingoverheadStandardQuantityorHours5pounds$11.00perpound2hours$17.00perhour2hoursStandardPriceorRate$55.00$34.00$3.00perhourStatCost$6.00Standard