Straton Company Produces One Product, the H2001

question 23

Multiple Choice

Straton Company produces one product, the H2001.Each unit of H2001 requires 6.5 pounds of raw material with a standard cost of $12.00 per pound.During July, Straton purchased 3,500 pounds of this raw material at a price of $12.25 per pound and used 3,280 pounds to produce 500 units of the H2001.How much is the material price variance?

• A)$3,000 unfavorable
• B)$360 unfavorable
• C)$875 unfavorable
• D)$820 unfavorable