The standard costs 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 2,500 kilograms @ $8, Direct labor 7,500 hours @ $12

Actual Costs:

Direct materials 2,600 kilograms @ $8.75

Direct labor 7,400 hours @ $11.40

Factory overhead (100% capacity 10,000 hrs.):

Variable cost @ $2 per hour

Total variable cost, $18,000

Fixed cost @ $0.80 per hour

Total fixed cost, $8,000

The following data relate to direct materials costs for November:

Actual costs 4,500 pounds at $6.00

Standard costs 4,600 pounds at $5.50

What is the direct materials price variance?

a. $2,250 favorable

b. $2,250 unfavorable

c. $2,300 unfavorable

d. $1,700 unfavorable

(Use above question information) What is the direct materials quantity variance? a. $550 unfavorable b. $600 favorable c. $550 favorable d. $600 unfavorable