1. The standard costs and actual costs for direct materials for the manufacture of 2,550 actual units of product are as follows:

   Standard Costs
   Direct materials	2,550 kilograms at $8.50
   Actual Costs
   Direct materials	2,700 kilograms at $8.00

   The direct materials quantity variance is

   a.$1,020 favorable

   b.$1,275 favorable

   c.$1,275 unfavorable

   d.$1,020 unfavorable