Perfect Builders Makes All Sorts of Moldings

question 122

Multiple Choice

Perfect Builders makes all sorts of moldings. Its standard quantity of material allowed is 1 foot of wood per 1 foot of molding at a standard price of $2.00 per foot. During August, it purchased 500,000 feet of wood at a cost of $1.90 per foot, which produced only 499,000 feet of molding. Calculate the materials price variance and the materials usage variance, respectively.

• A) $50,000 F and $2,000 U
• B) $49,900 U and $2,000 F
• C) $50,000 F and $1,900 U
• D) $49,900 F and $1,900 U

---

Definitions:

Medicine

The applied science of healing or treating diseases to enhance an individual’s health and well-being.

Industrial Mental Health

The study and practice of maintaining and improving mental health in the workplace.

Inputs into Outputs

The process of transforming resources or inputs (such as labor, materials, and information) into products, services, or results (outputs).

Internal Components

The elements or parts within a system, organization, or device that function together to ensure its operation or effectiveness.