During June, Cisco Company Produced 12,000 Chainsaw Blades

question 34

Multiple Choice

During June, Cisco Company produced 12,000 chainsaw blades.The standard quantity of material allowed per unit was 1.5 pounds of steel per blade at a standard cost of $8 per pound.The actual cost was $7 per pound.The actual pounds of steel that Cisco purchased were 19,500 pounds.All materials purchased were used.Calculate Cisco's materials usage variance.

• A) $10,500 U
• B) $12,000 F
• C) $12,000 U
• D) $10,500 F

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Definitions:

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