Answer:
Total direct materials cost variance is $66,000 and it is favorable.
Explanation:
Actual cost = Actual Quantity × Actual Price
= 300,000  × $1.78
= $534,000
Actual cost with selling price = Actual Quantity  × Selling Price
= 300,000  × $2.00
= $600,000
The total direct materials cost variance is computed as:
Total direct materials cost variance = Actual cost with selling price - Actual Cost
= $600,000 - $534,000
= $66,000
It is favorable.
Working Note:
Actual Price per lbs = $534,000 / 300,000
= $1.78
