Multiple Choice Question 86

The per-unit standards for direct materials are 2 gallons at $4 per gallon. Last month, 11600 gallons of direct materials that actually cost $42920 were used to produce 7000 units of product. The direct materials quantity variance for last month was

$9600 favorable.

$7200 favorable.

$9600 unfavorable.

$5800 unfavorable.