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A company has established 6 pounds of Material J at $3 per pound as the standard for the material in its Product Z. The company

A company has established 6 pounds of Material J at $3 per pound as the standard for the material in its Product Z. The company has just produced 1,000 units of this product, using 6,200 pounds of Material J that cost $17,680.

The direct materials quantity variance is:

  • $600 unfavorable

  • $920 unfavorable.

  • $320 favorable.

  • $600 favorable.

  • $920 favorable.

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