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A Company Provided the Following Direct Materials Cost Information Standard costs assigned:\text {Standard costs assigned:}

Question 175

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A company provided the following direct materials cost information. Compute the total direct materials cost variance. Standard costs assigned:\text {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\begin{array}{llr} \text {Direct materials standard cost \( (405,000 \) units @\$2.00/unit) } & \$ 810,000\\ \text { Actual costs:} &\\ \text {Direct Materials costs incurred ( 403,750 units@\$2.20/unit) } &\$ 888,250 \end{array}


A) $80,750 Unfavorable.
B) $2,500 Favorable.
C) $80,750 Favorable.
D) $78,250 Favorable.
E) $78,250 Unfavorable.

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