MC Qu. 46 A company provided the following...

A company provided the following direct materials cost information. Compute the total direct materials cost variance.

Standard costs assigned:
Direct materials standard cost (405,000 units @ $2.00/unit)	$	810,000
Actual costs:
Direct Materials costs incurred (403,750 units @ $2.20/unit)	$	888,250

Multiple Choice

$2,500 Favorable.

$78,250 Favorable.

$78,250 Unfavorable.

$80,750 Favorable.

$80,750 Unfavorable.