Hushovd Iron Works has collected the following data for its Thunderbolt line of products:Direct materials standard10 pounds per unitDirect materials standard cost$0.75 per poundActual direct materials used40,000 poundsActual finished goods produced4,500 unitsWhat is the direct materials quantity variance? A) $3,750 unfavorableB) $3,750 favorableC) $6,750 unfavorableD) $6,750 favorable

Direct material quantity variance = 3746.25 pounds (favorable)

Explanation:

Giving the following information:

Direct materials standard 10 pounds per unit.

Direct materials standard cost $0.75 per pound.

Actual direct materials used 40,000 pounds.

Actual finished goods produced 4,500 units.

Direct material quantity variance = (standard quantity - actual quantity) * standard price

Direct material quantity variance = (10-8.89) * 0.75 = 0.8325*4500units = 3746.25 pounds (favorable)