If the standard to produce a given amount of product is 1,000 units of direct materials at $11 and the actual was 800 units at $12, the direct materials quantity variance was $2,200 favorable.

Question

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The standard cost of direct materials is $11,000 (1,000 units x $11), and the actual cost is $9,600 (800 units x $12). The difference between the standard cost and the actual cost is $1,400 ($11,000 - $9,600), which is a favorable variance.

If the Standard to Produce a Given Amount of Product