The following information is from the COOP Jayuya Scrubs Factory, of disposable clothing for hospital personnel. It was created by a group of university students interested in having a social impact in the island's towns where there is a high level of unemployment. This is a project of young entrepreneurs and the activities carried out in March 2021 are reflected below. 2,000 garments were produced this month. How much is the Materials Price Variance?

INFORMATION -Direct materials: $ 6.00 / standard cost per yard of fabric -Current cost of yards of fabric (all $ purchased material was used in current production) ( Actual cost of DM purchases. NOTE DOES NOT INDICATE HOW MANY YARDS WERE PURCHASED): $11,200 -Standard cost of materials for units produced (DM Standard Cost for total units produced) : $12,000 -Variation of material efficiency (DM efficiency variance) $240 U -Direct labor: $ 24 / standard per hour of direct labor . Production standard in direct hours: 2 units of finished product: $ 24.50 / current cost per hour of direct labor. -Efficiency variation of direct labor (DL efficiency variant) : $672 F

Select:

A) $1,040 F B) $1,040 U C) $800 F D) $800 U