Answer:
Cost variance = 8,700 U
so correct option is C. $8,700 U
Explanation:
given data
selling = 29,000 units
sales commissions = $6 per unit
Actual sales = 31,500 units
sales commissions = $182,700
to find out
cost variance
solution
we know that Material quantity variance is express as
Material quantity variance = sales commissions × (Actual sales - selling )
Material quantity variance = $6 × (31,500 - 29,000)
Material quantity variance = =$15,000 U
and
Material price variance = $182700 - $31500 × $6
Material price variance = $6,300 F
so
Cost variance = $15,000 U - $6,300 F
Cost variance = 8,700 U
so correct option is C. $8,700 U
