D. $3,700 F

Majer Corporation makes a product with the following standard costs Standard Cost Per Unit $18.00 $ 9.00 4.50 Standard Quantity or Hours Standard Price or Rate $ 9.00 per ounce 15.00 per hour Direct materials Direct labor Variable overhead 2.0 ounces 0.6 hours 0.6 hours 7.50 per hour The company reported the following results concerning this product in February. Originally budgeted output Actual output Raw materials used in production Actual direct labor-hours Purchases of raw materials Actual price of raw materials Actual direct labor rate Actual variable overhead rate 8,800 units 8,600 units 13,200 ounces 5,360 hours 14,800 ounces $8.75 per ounce 13.00 per hour 6.00 per hour The company applies varlable overhead on the bas's of direct labor-hours. The direct materlals purchases variance is computed when the materlals are purchased. The materials price variance for February Is: Multiple Choice $3,700 U $39,300 U $39,300 F