Reference no: EM132551018

The standard costs and actual cost for direct materials for the manufacture of 2,500 actual units of produce are as follows:

Standard Costs

Direct materials (per compled unit) 1.04 kilograms at $8.75

Actual Costs

Direct materials 2,500 kilograms at $8

Question 1: The amount of the direct materials quanitiy variance is:

Option 1: $875 favorable

Option 2: $1,950 unfavorable

Option 3: $800 favorble

Option 4: $875 unfavorable