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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.
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