Reference: 21_02
Kermit Enterprises Has Collected the Following Data on One

Reference: 21_02
Kermit Enterprises has collected the following data on one of its products:
$\begin{array}{ll}\text { Direct materials standard (4 lbs. @ \$1/lb.) } & \$ 4 \text { per finished unit } \\\text { Total direct materials cost variance-unfavorable } & \$ 7,500 \\\text { Actual direct materials used } & 150,000 \mathrm{lbs} . \\\text { Actual finished units produced } & 30,000 \text { units }\end{array}$
-The direct materials quantity variance is:

A) $30,000 favorable
B) $30,000 unfavorable
C) $22,500 favorable
D) $37,500 unfavorable
E) $37,500 favorable