The Russell Company provides the following standard cost data per unit of product Direct material (2 gallons @ $3 per gallon) $ 6.00 Direct labor (1 hours @ $13 per hour) $13.00 During the period, the company produced and sold 26,000 units, incurring the following cost Direct material Direct labor 26,500 hours 55,000 gallons @ $ 2.90 per gallon @$12.75 per hour The direct material usage variance was: Multiple Choice $8,700 unfavorable. $8,700 favorable.