Garcia Industries uses a cost system that carries direct materials inventory at a standard cost. The controller has established these standards for the cost of one unit: Direct Materials Direct Labor Standard Quantity X $2.60 per pound $12.00 per hour $15.00 Garcia Industries made 3,000 units in January and used 15,500 pounds of material to make these units. Garcia Industries paid $39,370 for the 15,500 pounds of material. What was the total materials variance for January? $930 unfavorable $7,800 favorable $370 favorable $370 unfavorable $3,370 unfavorable $7,800 unfavorable $3,370 favorable $930 favorable 5 pounds 1.25 hours X Standard Price X = Standard Cost = = $18.00

Garcia Industries uses a cost system that carries direct materials inventory at a standard cost. The controller has established these standards for the cost of one unit: Garcia Industries made 3,000 units in January and used 15,500 pounds of material to make these units. Garcia Industries paid $39,370 for the 15,500 pounds of material. What was the total materials variance for January? $930 unfavorable $7,800 favorable $370 favorable $370 unfavorable $3,370 unfavorable $7,800 unfavorable $3,370 favorable $930 favorable