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Hushovd Iron Works has collected the following data for its Thunderbolt line of products: Direct...

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Accounting

Hushovd Iron Works has collected the following data for its Thunderbolt line of products:

Direct material standard 10 pounds per unit

Direct materials standard cost .75 per pound

Actual direct materials used 40,000 pounds

Actual finished goods purchased 4,500 units

What is the direct materials quantity variance?

a. $3750 unfavorable

b. $3750 favorable

c. $6750 unfavorble

d. $6750 favorable

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