1. A company provided the following direct materials cost information. Compute the cost variance.

Standard costs assigned:
Direct materials standard cost (424,000 units @ $6 / unit)	$2,544,000
Actual costs
Direct materials cost incurred (422,750 units @ $6.20 / unit)	$2,621,050

A) $7,500 Favorable.

B) $84,550 Favorable.

C) $77,050 Favorable.

D) $84,550 Unfavorable.

E) $77,050 Unfavorable.