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

Standard costs assigned:
Direct materials standard cost (419,000 units @ $4 / unit)	$1,676,000
Actual costs:
Direct materials cost incurred (417,750 units @ $4.20 / unit)	$1,754,550

$78,550 Favorable.

$78,550 Unfavorable.

$5,000 Favorable.

$83,550 Favorable.

$83,550 Unfavorable.