Tommy's Toys produces two types oftoys: trains and dolls.Tommy's uses stainless steel to manufacture the trains and plastic to manufacture the dolls. Information regarding the usage of steel and plastic for the past yearfollows:

Product Names

Steel

Plastic

Direct materials information

Standard pounds per unit

2

2 lb.

1

1 lb.

Standard Price(SP) per pound

$ 3.00

$3.00

?

Actual Quantity(AQ) used per unit

2.5

2.5 lbs.

2.5

2.5 lbs.

Actual Price(AP) paid for material

$ 2.50

$2.50

$ 2.50

$2.50

Actual Quantity Purchased(AQP) and used

2 comma 700

2,700 lbs.

700

700 lbs.

Price variance

?

$ 1 comma 309

$1,309 F

Quantity variance

$ 413

$413 U

?

Flexible budget variance

?

$ 884

$884 F

Number of units produced

275

275

450

450

What is the direct materials flexible budget variance for steel used to manufacture thetrains?

A.

$ 1 comma 763

$1,763 unfavorable

B.

$ 1 comma 763

$1,763 favorable

C.

$ 937

$937 favorable

D.

$ 937

$937 unfavorable