Initially the market for labor in the California wine industry is in equilibrium, but then the demand for California wines suddenly increases. In the California wine industry, equilibrium wage and the quantity of workers employed .

Direct material quantity variance= $6,000 unfavorable

Explanation:

Giving the following information:

Direct materials 7.5 ounces $ 8.00 per ounce

Actual output 2,500 units

Raw materials used in production 19,500 ounces

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= (7.5*2,500 - 19,500)*8

Direct material quantity variance= $6,000 unfavorable