Majer Corporation makes a product with the following standard costs: Standard Quantity or HoursStandard Price orRateStandard Cost Per UnitDirect materials 6.40?ounces$3.00?per ounce$19.20?Direct labor 0.6?hours$16.00?per hour$9.60?Variable overhead 0.6?hours$3.00?per hour$1.80?The company reported the following results concerning this product in February. Originally budgeted output 4400?unitsActual output 5500?unitsRaw materials used in production 30,700?ouncesActual direct labor-hours 1790?hoursPurchases of raw materials 29,300?ouncesActual price of raw materials$117.10?per ounceActual direct labor rate$107.60?per hourActual variable overhead rate$6.30?per hourThe 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 quantity variance for February is:
A. $13,437 F
B. $13,437 F
C. $13,500 F
D. $13,500 U
Answer: C
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