Reelmates manufactures fishing poles. In a recent month, the company budgeted production of 2,000 poles. Actual production was 2,200. According to the standard cost card, each pole requires 3 feet of fiberglass rod at a cost of $9 per foot. Reelmates used 6,500 feet of rod at a net cost of $65,000 for the period.
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The total material variance was:
A) $6,500 favorable.
B) $900 unfavorable.
C) $900 favorable.
D) $5,600 unfavorable.
Correct Answer:
Verified
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