This information is used for the first four questions where you will calculate materials and labor variances. Excalibur bought 3,000 pounds of materials for $2,850. They used 2,800 pounds to produce 1,000 units of output. Direct labor costs totaled $18,000 for 600 hours of work. Standards have been set as follows: Direct Materials: 2 pounds @ $1.10 per pound Direct Labor: .5 hours @ $32 per hour The materials quantity variance is: S880 unfavorable $420 favorable O $1,100 unfavorable S450 favorable S880 favorable