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Fugate Company Planned to Use 1 Yard of Plastic Per

Question 78

Multiple Choice

Fugate 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 2,600 units, although it had planned to make only 2,200 units. Total yards used for production were 2,640. How much is the total materials variance?


A) $32,400 U
B) $3,240 U
C) $2,640 F
D) $600 U

Correct Answer:

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