Scarlett Company has a direct materials standard of 3 gallons of input at a standard price of $5.00 per gallon. During July, Scarlett Company purchased and used 7,500 gallons at an actual price of $4.60 to produce 2,450 units of product. What is the direct materials quantity variance?

Multiple Choice

$750 unfavorable

$750 favorable

$3,000 favorable

$690 unfavorable