The Koski Company has established standards as follows:

Direct material: ………… 3 lbs. @ $4/lb. = $12 per unit

Direct labor: ……………. 2 hrs. @ $8/hr. = $16 per unit

Actual production figures for the past year were as follows:

Units produced: 500

Direct material used: 1,600 lbs.

Direct material purchased (3,000 lbs.): $12,300

Direct labor cost (950 hrs.): $7,790

The materials quantity variance is:

1. $410 favorable

2. $410 unfavorable

3. $400 favorable

4. $400 unfavorable