Choice "B" is correct. 25,000 units used to produce November output. Mnemonic:

Memorize how these variances are calculated: Your dad always gave you advice about life, and memorizing variance formulas is easy if you remember him! Apply "DADS" twice to set up a schedule you cannot forget!

Easy Schedule

The facts for the question tell us that the quantity (usage) variance is an unfavorable $2,500. How is the materials usage variance calculated? Take a look at PURE with DADS twice, and don't forget the difference is SAD!!! U Usage varianceStandard price per unit: The standard price per unit ($2.50) is actually calculated in a separate question (D93-1.22), but the explanation is included here as well. The standard allowed for the material was $60,000, and 12,000 units were produced in November. Therefore, the materials cost on "standard" was $5.00 per unit [$60,000/12,000 units]. However, we are told that it takes two units of raw material to make one unit of completed goods. So, the standard price for one unit of material is $2.50 [$5.00/2]. We also know that the usage variance is unfavorable $2,500. So, we solve for the "difference in usage" as follows:

So, the unfavorable units used amounted to 1,000. The facts of the question tell us that 12,000 units were produced in November. At two units of raw materials per unit produced, that's a standard of 24,000 units of raw materials. Actual units used (S - A to produce the unfavorable usage variance of $2,500 (alternatively, 24,000 standard units plus 1,000 unfavorable units used.