Lason Company manufactures silk dresses. The standard materials cost of the silk used in a particular design is $60 based on $24 per square yard. A production run of 1,000 dresses in June resulted in usage of 2,625 square yards of silk at a cost of $22 per square yard, a total cost of $57,750. The materials usage variance resulting from the above production run is:

A. $5,250 (favorable).

B. $3,000 (unfavorable).

C. $2,250 (favorable).

D. $5,000 (favorable).

Answer rating: 100% (QA)

B 3000 unfavorable Material usage variance Standard priceStandard quantity Actual quantity Standard quantity 6024 25 sqyards Standard quantity for actual production 251000 2500 sqyards Actual quantity 2625 sqyards Standard price ... View the full answer