Final answer:
To calculate the total material cost variance, subtract the standard materials cost from the actual materials cost and multiply it by the units of production. In this case, the total material cost variance is $8,500, which means it is B) $750 U.
Step-by-step explanation:
To calculate the total material cost variance, we need to find the difference between the actual materials cost and the standard materials cost, and then multiply it by the actual units of production.
Standard materials cost = Materials cost per yard (standard) x Yards per unit (standard)
Actual materials cost = Actual materials cost per yard x Actual yards per unit
Total material cost variance = (Actual materials cost - Standard materials cost) x Units of production
Using the given data:
Standard materials cost = $2.00 x 4.5 = $9.00
Actual materials cost = $2.10 x 4.75 = $9.97
Total material cost variance = ($9.97 - $9.00) x 9,500 = $8,500
Therefore, the total material cost variance is $8,500, which means it is option B) $750 U.