Jazz, Inc., manufactures a single product. The company uses a standard cost system and has established the following standards for one unit of product:

Jazz's budget for March used estimated production and sales of 2,800 units. During March, the following activity was recorded by the company:

The company produced 3,000 units during the month.

A total of 8,000 pounds of material were purchased and used.The cost was $23,000.

During March, 1600 direct labor hours were worked at a rate of $6.50 per hour.

For all of these Jazz questions, pick the closest answer numerically and then choose based on the U or F. What would be the volume variance for materials for March?

a. $9,500 U

b. $10,400 U

c. $900 F

d. $900 U

e. $9,500 F

f. $10,400 F

Standard Quantity of inputs Standard Price Standard Cost per unit $4.50 $3.60 or Rate per input Direct materials 1.5 pounds$3.00 per pound $6.00 per hour Direct labor 0.6 hours