Fletcher Company collected the following data regarding production of one of its products. Compute the direct materials quantity variance. Direct materials standard (6 pounds @ $2/pound) $ 12 per finished unit

Actual direct materials used 273,250 pounds

Actual finished units produced 45,000 units

Actual cost of direct materials used $ 544,020

Multiple Choice

$2,480 unfavorable.

$4,020 unfavorable.

$2,480 favorable.

$6,500 unfavorable.

$4,020 favorable.