Question 34(1 point)

Reference: 10-06

The Alpha Company produces toys for national distribution. Standards for a particular toy are:

Materials: 12 grams per unit at 56 per gram.

Labour: 2 hours per unit at $2.75 per hour.

During the month of December, the company produced 1,000 units. Information for the month follows:

Materials: 14,000 grams were purchased and used at a total cost of $7,140.

Labour: 2,500 hours worked at a total cost of $8,000.

What was the materials price variance?

Question 34 options:

A)

$420 favourable.

B)

$420 unfavourable.

C)

$700 unfavourable.

D)

$700 favourable.