Milton Company uses a standard cost system.

• Standards call for 2 direct labor hours per widget. The standard labor rate is $10 per hour.
• Four pounds of material are needed for each widget at a standard cost of $2.25 per pound.

Milton actually produces 17,000 widgets during the year.

• Direct labor costs are $359,100 for 34,200 hours.
• Milton purchased and used 70,000 pounds of materials at $2.50 per pound.

For direct materials, what is the usage variance? Answers are labeled as favorable (F) or unfavorable (U).

	A.	$17,000 U
	B.	$4,500 U
	C.	$17,500 U
	D.	$22,000 U
	E.	$5,000 U