Question A) A company provided the following direct materials cost information. Compute the direct materials quantity variance. Standard costs assigned: Direct materials standard cost (442,000 units @ $2.30/unit) $ 1,016,600 Actual costs: Direct Materials costs incurred (440,200 units @ $2.60/unit) $ 1,144,520

Multiple Choice $127,920 Favorable. $4,680 Unfavorable $4,680 Favorable. $4,140 Favorable. $4,140 Unfavorable.

Question B)

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

Standard costs assigned:
Direct materials standard cost (416,000 units @ $6.00 / unit)	$	2,496,000
Actual costs:
Direct Materials costs incurred (414,750 units @ $6.20 / unit)	$	2,571,450

• $7,500 Favorable.

• $82,950 Unfavorable.

• $75,450 Favorable.

• $75,450 Unfavorable.

• $82,950 Favorable.