The standard costs and actual costs for direct materials for the manufacture of 2,500 actual units of product are as follows: Standard Costs Direct materials 2,500 kilograms at $8.50 Actual Costs Direct materials 2,600 kilograms at $8.75 The direct materials quantity variance is

Direct material quantity variance = $850 unfavorable

Explanation:

Giving the following information:

The standard costs and actual costs for direct materials for the manufacture of 2,500 actual units of product are as follows: Standard Costs Direct materials 2,500 kilograms at $8.50 Actual Costs Direct materials 2,600 kilograms at $8.75

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

Direct material quantity variance = (2,500 - 2,600) * 8.5 = $850 unfavorable