Inversion Reversion sells mufflers. These mufflers have the following standard and actual quantities for direct materials used.

Standard quantity: 1,000 DM units Actual quantity used: 900 DM units

Inversion Reversion's total standard cost (i.e. standard quantity * standard price) for direct materials is $54,000. Assume the firm's static budget for finished goods muffler production and actual finished goods muffler production are equal.

What is the direct material quantity variance (round to nearest cent if necessary)?

a.$6,000 favorable

b.$6,000 unfavorable

c.$5,400 favorable

d. $5,400 unfavorable