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Following is the information about Standard Inc. The standard costs and actual costs for direct materials, direct labor, and factory overhead for the manufacture of

Following is the information about Standard Inc. The standard costs and actual costs for direct materials, direct labor, and factory overhead for the manufacture of 2,500 units of product are as follows: Standard Costs Direct materials 2,500 kilograms @ $8 Direct labor 7,500 hours @ $12 Actual Costs Direct materials 2,600 kilograms @ $8.75 Direct labor 7,400 hours @ $11.40 Factory overhead (100% capacity - 10,000 hrs.): Variable cost @ $2 per hour Total variable cost, $18,000 Fixed cost @ $0.80 per hour Total fixed cost, $8,000 Refer to the information provided for Standard Inc. The amount of the direct materials quantity variance is: $875 favorable. $875 unfavorable. $800 favorable. $800 unfavorable.

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