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Question - A company has established 6 pounds of Material J at $3 per pound as the standard for the material in its Product Z. The company has just produced 1,200 units of this product, using 7,400 pounds of Material J that cost $21,080. Compute the direct materials quantity variance?
a. $1,120 favorable.
b. $600 favorable.
c. $600 unfavorable.
d. $1,120 unfavorable.
e. $520 favorable.
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