The following company information is available. The direct materials quantity variance is:

Direct materials used for production 36,000 gallons

Standard quantity for units produced 34,400 gallons

Standard cost per gallon of direct material $6.00

Actual cost per gallon of direct material $6.10

A. $10,000 unfavorable.

B. $13,200 unfavorable.

C. $9,600 unfavorable.

D. $10,000 favorable.

E. $13,200 favorable.

Direct material quantity variance = $9,600 unfavorable

Explanation:

Giving the following information:

Direct materials used for production 36,000 gallons

Standard quantity for units produced 34,400 gallons

Standard cost per gallon of direct material $6.00

To calculate the direct material quantity variance, we need to use the following formula:

Direct material quantity variance = (standard quantity - actual quantity) * standard price

Direct material quantity variance = (34,400 - 36,000) * 6

Direct material quantity variance = $9,600 unfavorable