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Solly Corporation produces a product for national distribution. Standards for the product are:
- Materials: 12 ounces per unit at 60 per ounce.
- Labor: 2 hours per unit at $8 per hour.
During the month of December, the company produced 1,000 units. Information for the month follows:
- Materials: 14,000 ounces purchased and used at a total cost of $7,700.
- Labor: 2,500 hours worked at a total cost of $20,625.
The materials price variance is:
Multiple Choice
-
$600 U
-
$700 U
-
$600 F
-
$700 F
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