Shade Company adopted a standard cost system several years ago.The standard costs for direct labor and direct materials for its single product are as follows: Materials (5 kilograms x $12.00 per kilogram)= $60.00/unit.Direct labor (3.5 hours x $20.00 per hour)= $70.00/unit.All materials were issued at the beginning of processing.The operating data shown below were taken from the records for December:
The direct materials usage variance for December is:
A)$1,800 unfavorable.
B)$1,800 favorable.
C)$59,400 unfavorable.
D)$59,400 favorable.

Question

Shade Company adopted a standard cost system several years ago.The standard costs for direct labor and direct materials for its single product are as follows: Materials (5 kilograms x $12.00 per kilogram)= $60.00/unit.Direct labor (3.5 hours x $20.00 per hour)= $70.00/unit.All materials were issued at the beginning of processing.The operating data shown below were taken from the records for December: 
The direct materials usage variance for December is:
A)$1,800 unfavorable. 
B)$1,800 favorable. 
C)$59,400 unfavorable. 
D)$59,400 favorable.

Quizplus · Accepted Answer

The Answer of Shade Company adopted a standard cost system several years ago.The standard costs for direct labor and direct materials for its single product are as follows: Materials (5 kilograms x $12.00 per kilogram)= $60.00/unit.Direct labor (3.5 hours x $20.00 per hour)= $70.00/unit.All materials were issued at the beginning of processing.The operating data shown below were taken from the records for December: 
The direct materials usage variance for December is:
A)$1,800 unfavorable. 
B)$1,800 favorable. 
C)$59,400 unfavorable. 
D)$59,400 favorable.

Shade Company Adopted a Standard Cost System Several Years Ago