Kennedy Inc. has the following data for its operation in August:

Increase in direct materials inventory		100	Sets
Direct materials purchased (AQ)		1,600	Sets
Finished goods manufactured		700	units
Direct materials purchase-price variance	$	576	Favorable
Budgeted
Finished goods to manufacture		800	Units
Direct materials purchases		2,000	Sets
Direct materials per unit of finished goods		2	Sets
Direct materials price per set (SP)	$	4.70

What was the direct materials usage variance in August, rounded to the nearest dollar?

Multiple Choice

$940 unfavorable.

$705 favorable.

$235 unfavorable.

$470 unfavorable.

$705 unfavorable.