A company had the following direct materials cost information: Standard cost assigned: Direct materials standard cost (405,000 units @ $2/unit) $810,000 Actual Cost Direct materials costs incurred (403,750 units @ $2.20/unit) $888,250 What was the cost variance? 1 $2,500 Favorable. 2) $78,250 Favorable 3) $78.250 Unfavorable 4) $80,750 Favorable. 5) $80,750 Unfavorable