A company provided the following direct materials cost information. Compute the total direct materials cost variance.     Standard costs assigned:   Direct materials standard cost (405,000 units @ $2/unit)$810,000 Actual costs:   Direct Materials costs incurred (403,750 units @ $2.20/unit)$888,250 

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


Answer: C

Business

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