Scorpion Production Company Planned to Use 1 Yard of Plastic

question 241

Multiple Choice

Scorpion Production Company planned to use 1 yard of plastic per unit budgeted at $81 a yard. However the plastic actually cost $80 per yard. The company actually made 3900 units although it had planned to make only 3300 units. Total yards used for production were 3960. How much is the total materials variance?

• A) $48600 U
• B) $4860 U
• C) $3960 F
• D) $900 U

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