Kevin Jarvis is the controller of Bitterroot Industries. Kevin prepared the following budgeted income statement at various levels of sales. After careful review of the budgeted income statements, and after discussions with the sales and production managers, the CEO determines that the best alternative is to base the budget on a sales volume of 30,000 units.

20,000	30,000	40,000
Sales	$1,240,000	$1,860,000	$2,480,000
Variable costs
Direct material	340,000	510,000	680,000
Direct labor	300,000	450,000	600,000
Overhead	360,000	540,000	720,000
Total variable costs	1,000,000	1,500,000	2,000,000
Contribution margin	240,000	360,000	480,000
Fixed costs
Overhead	62,000	62,000	62,000
Rent	46,000	46,000	46,000
Insurance	28,000	28,000	28,000
Advertising	15,000	15,000	15,000
Total fixed costs	151,000	151,000	151,000
Operating income	$89,000	$209,000	$329,000

Actual results for the year were 28,000 units, reflected in the following income statement:

28,000
Sales	$1,764,000
Variable costs
Direct material	504,000
Direct labor	434,000
Overhead	509,600
Total variable costs	1,447,600
Contribution margin	316,400
Fixed costs
Overhead	64,200
Rent	45,800
Insurance	29,100
Advertising	14,000
Total fixed costs	153,100
Operating income	$163,300

What is the sales volume variance for direct material?

$28,000 favorable

$28,000 unfavorable

$6,000 unfavorable

$34,000 favorable