Answer:
Direct Material Quantity Variance = $2,000 Unfavorable
Explanation:
For the provided information we have,
Actual quantity used = 6,500 lbs
Standard quantity allowed for actual production = 6,000 lbs
Actual price = $3.80
Standard price = $4.00
Direct Material Quantity Variance = (Standard Quantity - Actual Quantity) Standard Price
= (6,000 lbs - 6,500 lbs) $4.00
= - $2,000
As we can see that actual quantity used is more than the allowed standard quantity, thus, the variance is unfavorable.
Direct Material Quantity Variance = $2,000 Unfavorable