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The standard cost and actual cost for direct materials for the manufacture of 2,500 actual units of product are as follows:
Standard Costs
Direct materials 2,500 kilograms at $8
Actual Costs
Direct materials 2,600 kilograms at $8.75
Question 1: The amount of the direct materials quantity variance is :
Option 1: $875 favorable
Option 2: $800 unfavorable
Option 3: $800 favorable
Option 4: $875 unfavorable
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