ITS Corporation produced 350 units of product ABCD. To produce this, the company used 1,800 kilograms of plastic which they bought at $12 per kilogram. On the other hand, the standard price per kilogram of plastic is set at $12.50.

The production resulted to an unfavorable total direct material spending variance of $850.

Using limited data, determine the following:

Direct material quantity variance =

Total standard kilograms allowed to produce the 350 units of product ABCD. =

For requirement 1, Indicate whether the variance is favorable or unfavorable.