Question - A company provided the following direct materials cost information. Compute the direct materials quantity variance.
Standard costs assigned: Direct materials standard cost (405,000 units @ $2.00/unit)$810,000 Actual costs: Direct Materials costs incurred (403,750 units @ $2.20/unit)$888,250
A. $78,250 Favorable.
B. $2,750 Unfavorable
C. 2,700 Favorable.
D. 2,500 Favorable.
E. 2,500 Unfavorable.