Planned:

Production $22,000$ units

Standards $100$ lbs$.$ @ $$2\mathrm{.}50/$lb$.=$ $$250/$unit

Direct Labor $2$ hrs$/$unit $*$ $$10/$hour $=$ $$20/$unit

Variable Overhead $$2\mathrm{.}50/$direct labor hour $=$ $$5/$unit

Fixed Overhead $$698,500$

Actual:

Production $24,000$ units

Material used $2,640,000$ lbs @ $$2\mathrm{.}40/$lb

Direct Labor $49,000$ hours total $$465,500$

Variable Overhead $$128,000$

Fixed Overhead $$750,000$

What is the Materials Usage Variance?

Question $8$ options:

a$)$

$$600,000$ U

b$)$

$$600,000$ F

c$)$

$$264,000$ U

d$)$

$$264,000$ F