The per unit standards for direct materials are 2 gallons at $4 per gallon. last month, 5,600 gallons of direct materials that actually cost $21,200 were used to produce 3,000 units of product. the direct materials quantity variance for last month was:
$1,200 favorable
$1,600 favorable
$1,600 unfavorable
$2,800 unfavorable

$1,600 favorable

Explanation:

The computation of the material quantity variance is shown below:

= Standard Price × (Standard Quantity - Actual Quantity)

where,

Standard quantity = 3,000 units × 2 gallons = 6,000 gallons

And, other items values would remain the same

Now put these values to the above formula

So, the value would be equal to

= $4 × (6,000 gallons - 5,600 gallons)

= $4 × 400 gallons

= $1,600 favorable