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Michael Corporation manufactures railroad cars, which is its only product. The standards for the railroad cars are as follows: Standard tons of direct material (steel)

Michael Corporation manufactures railroad cars, which is its only product. The standards for the railroad cars are as follows:

Standard tons of direct material (steel) per car 3

Standard cost per ton of steel $12.00

During the month of March, the company produced 1750 cars. Related production data for the month follows:

Actual materials purchased and used (tons) 6550

Actual direct materials total cost $115,000

What is the direct materials quantity variance for the month?

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