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Question 1: A company developed the following per-unit standards for its product: 2 pounds of direct materials at $6 per pound. Last month, 1,000 pounds of direct materials were purchased for $5,700. During last month, the company used 500 pound in producing 200 units of output. The direct materials purchase price variance and direct material efficiency variance, respectively, for last month were
Option a. $300 F and 600 U.
Option b. $300 F and 100 U.
Option c. $150 F and 600 U.
Option d. $300 U and 100 F.
Option e. None of the above
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