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Question - The Counting Crows Company uses standard costing. During 2018, 12,000 pounds of direct material were purchased at an average cost of $5.20 per pound. Also during 2018, 10,500 pounds of direct material were used to produce 5,000 units. For 2018, the standards for direct materials were 2 pounds per unit at $5.50 per pound. Compute the direct materials quantity variance for 2018.
a. $3,150 favorable
b. $3,600 unfavorable
c. No choices are correct
d. $2,750 unfavorable
e. $3,600 favorable
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