Hushovd Iron Works has collected the following data for its Thunderbolt line of products:
Direct materials standard 5 pounds per unit
Direct materials standard cost $0.55 per pound
Actual Direct Materials Used (AQU) 20,000 pounds
Actual finished goods purchased 5,000 units
What is the direct materials quantity variance?
a) $1,000 favorable
b) $1,000 unfavorable
c) $5,000 favorable
d) $5,000 unfavorable