A company uses the following standard costs to produce a single unit of output.

Direct materials

7 pounds at $1.0 per pound=$7.00

Direct labor0.30 hour at $8.00 per hour=$2.40

Manufacturing overhead0.30 hour at $4.30 per hour=$1.29

During the latest month, the company purchased and used 66,000 pounds of direct materials at a price of $1.30 per pound to produce 10,000 units of output. Direct labor costs for the month totaled $20,672 based on 2,720 direct labor hours worked. Variable manufacturing overhead costs incurred totaled $9,900 and fixed manufacturing overhead incurred was $18,000. Based on this information, the direct materials quantity variance for the month was:

Multiple Choice

• $4,000 favorable
• $19,800 unfavorable
• $19,800 favorable
• $4,000 unfavorable
• $3,000 favorable