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Question - Seaside Company produces picture frames. During the year 190,000 picture frames were produced. Materials and labor standards for producing the picture frames are as follows:
Direct materials (2 pieces of wood @ $2.25) $4.50
Direct labor (2 hours @ $10) $20.00
Seaside purchased and used 400,000 pieces of wood at $2.00 each and its actual labor hours were 360,000 hours at a wage rate of $10.50.
Required - What is the materials price variance?
a. $100,000 F
b. $112,500 U
c. $135,000 F
d. $170,000 U
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