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

Standard costs assigned:
Direct materials standard cost (492,000 units @ $2.70/unit)	$	1,328,400
Actual costs:
Direct materials costs incurred (490,070 units @ $3.00/unit)	$	1,470,210

Multiple Choice

• $141,810 Favorable.

• $5,790 Unfavorable

• $5,790 Favorable.

• $5,211 Favorable.

• $5,211 Unfavorable.

  Hassock Corp. produces woven wall hangings. It takes 4 hours of direct labor to produce a single wall hanging. Hassocks standard labor cost is $12 per hour. During August, Hassock produced 18,000 units and used 72,130 hours of direct labor at a total cost of $863,560. What is Hassocks labor rate variance for August?

  Multiple Choice

• $1,996 favorable.

• $2,000 unfavorable.

• $2,000 favorable.

• $3,996 favorable.

• $1,996 unfavorable.