The standard and actual costs for direct materials, direct labor and factory overhead for the manufacture of 2,500 units of product are as follows:

Standard costs

Direct materials 2,600 kilograms @ $8.75

Direct labor 7,400 hours @ $11.40

Actual costs

Direct materials 2,500 kilograms @ $8.00

Direct labor 7,500 hours @ $12.00

3. Using the information given above, the direct materials quantity variance is:

$875 unfavorable

$950 favorable

$875 favorable

$950 unfavorable

4. Using the information given above, the direct materials cost variance is:

$2,500 unfavorable

$2,500 favorable

$2,750 unfavorable

$2,750 favorable