Sheridan Industries uses a standard cost system in which direct material is carried at standard cost. Sheridan has established the following standards: standard quantity of 9 pounds per unit, standard price $1.80 per pound. During January, Sheridanpurchased 163,500 pounds of direct material at a cost of $311,000 and used 166,000 pounds in production of 19,400 units. Calculate the direct materials quantity variance and indicate whether the variance is favorable or unfavorable.

Direct materials quantity variance

$enter the direct materials quantity variance in dollars

select an option FavorableUnfavorable