Reference: 11-01
Bryan Company Employs a Standard Cost System in Which

Reference: 11-01
Bryan Company employs a standard cost system in which direct materials inventory is carried at standard cost. Bryan has established the following standards for the prime costs of one unit of product: $$\begin{array} { | l | c | l | c | } \hline & \text { Standard Quantity } & \text { Standard Price } & \text { Standard Cost } \\\hline \text { Direct materials } & 6.0 \text { grams } & \$ 3.50 / \text { gram } & \$ 21.00 \\\hline \text { Direct labour } & 1.3 \text { hours } & \$ 11.00 / \text { hour } & 14.30 \\\hline & & & \$ 35.30 \\\hline\end{array}$$ During March, Bryan purchased 165,000 grams of direct material at a total cost of $585,750. The total factory wages for March were $400,000, 90 percent of which were for direct labour. Bryan manufactured 25,000 units of product during March using 151,000 grams of direct material and 32,000 direct labour hours.
-Cox Company's direct material costs for the month of January were as follows: 78 $$\begin{array} { | l | l | l | } \hline \text { Actual quantity purchased } & 18,000 & \text { kilograms } \\\hline \text { Actual unit purchase price } & \$ 3,60 & \text { per kilogram } \\\hline \begin{array} { l } \text { Materials price variance-unfavourable (based on } \\\text { purchases) }\end{array} & \$ 3,600 & \\\hline \text { Standard quantity allowed for actual production } & 16,000 & \\\hline \text { Actual quantity used } & 15,000 & \text { kilograms } \\\hline\end{array}$$ For January there was a favourable direct material quantity variance of?

A) $3,400.
B) $3,375.
C) $3,800.
D) $3,360.