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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 1,000 units of this product, using 6,200 pounds of Material J that cost $17,680.
Question 1: The direct materials quantity variance is:
Option 1: $600 unfavorable
Option 2: $920 unfavorable.
Option 3: $320 favorable.
Option 4: $600 favorable.
Option 5: $920 favorable.
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