13.

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

Standard costs assigned:
Direct materials standard cost (406,000 units @ $3.00 / unit)	$	1,218,000
Actual costs:
Direct Materials costs incurred (404,750 units @ $3.20 / unit)	$	1,295,200

Multiple Choice

• $3,750 Favorable.

• $77,200 Favorable.

• $77,200 Unfavorable.

• $80,950 Unfavorable.

• $80,950 Favorable.