TB MC Qu. 10-151 Majer Corporation makes a product with ...

Majer Corporation makes a product with the following standard costs:

	Standard Quantity or Hours			Standard Price or Rate			Standard Cost Per Unit
Direct materials		3.0	ounces	$	5.50	per ounce	$	16.50
Direct labor		0.8	hours	$	11.50	per hour	$	9.20
Variable overhead		0.8	hours	$	4.00	per hour	$	3.20

The company reported the following results concerning this product in February.

Originally budgeted output		6,000	units
Actual output		5,800	units
Raw materials used in production		17,400	ounces
Actual direct labor-hours		4,840	hours
Purchases of raw materials		19,000	ounces
Actual price of raw materials	$	5.25	per ounce
Actual direct labor rate	$	13.20	per hour
Actual variable overhead rate	$	4.70	per hour

The company applies variable overhead on the basis of direct labor-hours. The direct materials purchases variance is computed when the materials are purchased.

The materials price variance for February is:

Multiple Choice $4,750 U $4,350 U $4,750 F $4,350 F