Fairy Company reported the following flexible budget, as-if budget, and actual results. The company's materials quantity variance is:

Flexible Budget "As-if" Budget Actual Results 

Direct Materials $7,000 $4,000 $6,000 

Direct Labor $12,000 $13,000 $13,500

 

1. $3,000 Unfavorable

2. $3,000 Favorable

3. $2,000 Unfavorable

4. $2,000 Favorable