Find what is the direct materials quantity variance

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Question 1: The standard materials cost to produce 1 unit of Product R is 9 pounds of material at a standard price of $70 per pound. In manufacturing 8,300 units, 72,500 pounds of material were used at a cost of $71 per pound. What is the direct materials quantity variance?

Option 1: $81,500 favorable.

Option 2: $72,500 favorable.

Option 3: $72,500 unfavorable.

Option 4: $154,000 favorable.

Option 5: $154,000 unfavorable.

Reference no: EM132527555

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