A company reports the following for one of its products. Direct materials standard (10 pounds @ $6 per pound) Actual units produced Actual cost of direct materials used $ 60 per unit 40,000 units Direct materials variance $ 2,438,000 Compute the total direct materials variance and identify it as favorable or unfavorable. (Indicate the effect of the variance by selecting favorable, unfavorable, or no variance.)

A company reports the following for one of its products. Direct materials atandard (10 pounda 8$6 per pound) Actual unitn produced Actual cost of direct naterials uned $60 per unit 40,000 unit: $2,438,000 Compute the total direct materials variance and identify it as favorable or unfavorable. (Indicate the effect of the variance by selecting favorable, unfavorable, or no variance.)