Compute the direct materials quantity variance

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Question - A company provided the following direct materials cost information. Compute the direct materials quantity variance.

Standard costs assigned:   Direct materials standard cost (405,000 units @ $2.00/unit)$810,000 Actual costs:   Direct Materials costs incurred (403,750 units @ $2.20/unit)$888,250

A. $78,250 Favorable.

B. $2,750 Unfavorable

C. 2,700 Favorable.

D. 2,500 Favorable.

E. 2,500 Unfavorable.

Reference no: EM131732161

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