James Company manufactures t-shirts.During the year, it manufactured 250,000 t-shirts, using 2 hours of direct labor at a rate of $8.50 per hour.The materials and labor standards for manufacturing the t-shirts are:

- It took James 1,400,000 yards at $2.50 per yard to make the 250,000 t-shirts.
What is James' materials usage variance?
A) $250,000 F
B) $300,000 F
C) $300,000 U
D) $250,000 U

Question

James Company manufactures t-shirts.During the year, it manufactured 250,000 t-shirts, using 2 hours of direct labor at a rate of $8.50 per hour.The materials and labor standards for manufacturing the t-shirts are:

- It took James 1,400,000 yards at $2.50 per yard to make the 250,000 t-shirts.
What is James' materials usage variance?

-  It took James 1,400,000 yards at $2.50 per yard to make the 250,000 t-shirts.
What is James' materials usage variance?
A) $250,000 F 
B) $300,000 F 
C) $300,000 U 
D) $250,000 U

Quizplus · Accepted Answer

11ea8a4c_4972_f763_a0e6_1d5db0994ebd_TB5550_00 SQ = 1,500,000 = 250,000 × 6

James Company Manufactures T-Shirts