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Manor, Inc., forecasts monthly production of 15,000 units at a materials cost of $4 each. In July, Manor produced 16,000 units. Each unit produced is
Manor, Inc., forecasts monthly production of 15,000 units at a materials cost of $4 each. In July, Manor produced 16,000 units. Each unit produced is budgeted to include 2 pounds of materials at $2 per pound. If 33,000 pounds of material at a cost of $1.80 per pound were used in production, compute the materials budget variance.
A. $4,000 favorable
B. $6,400 favorable
C. $4,600 favorable
D. $3,600 favorable
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