QUESTION 12

Seaside Company produces picture frames. During the year 190,000 picture frames were produced. Materials and labor standards for producing the picture frames are as follows:

Direct materials (2 pieces of wood @ $2.25) $4.50

Direct labor (2 hours @ $10) $20.00

Seaside purchased and used 400,000 pieces of wood at $2.00 each and its actual labor hours were 360,000 hours at a wage rate of $10.50.

What is the materials price variance?

a.$100,000 F

b.$112,500 U

c.$135,000 F

d.$170,000 U