Majer Corporation makes a product with the following standard costs:

	Standard Quantity or Hours			Standard Price or Rate			Standard Cost Per Unit
Direct materials		2.0	ounces	$	12.00	per ounce	$	24.00
Direct labor		0.6	hours	$	18.00	per hour	$	10.80
Variable overhead		0.6	hours	$	10.50	per hour	$	6.30

The company reported the following results concerning this product in February.

Originally budgeted output		11,200	units
Actual output		11,000	units
Raw materials used in production		16,800	ounces
Actual direct labor-hours		6,800	hours
Purchases of raw materials		18,400	ounces
Actual price of raw materials	$	11.75	per ounce
Actual direct labor rate	$	14.80	per hour
Actual variable overhead rate	$	7.80	per hour

The company applies variable overhead on the basis of direct labor-hours. The direct materials purchases variance is computed when the materials are purchased.

The materials price variance for February is:

Multiple Choice

Top of Form

$66,600 U

$66,600 F

$4,600 F

$4,600 U

Bottom of Form