Assume the following:

• The standard price per pound is $2.00.
• The standard quantity of pounds allowed per unit of finished goods is 4 pounds.
• The actual quantity of materials purchased and used in production is 50,000 pounds.
• The actual purchase price per pound of materials was $2.25.
• The company produced 13,000 units of finished goods during the period.

What is the materials spending variance?

Multiple Choice

• $8,000 U

• $8,000 F

• $8,500 U

• $8,500 F