The following standard costing information is available:

Budgeted quantity Budgeted price

Direct materials0.20 pounds $40 per pound

Direct labor 0.10 hours $18 per hour

During July, the company produced and sold 4,000 containers using 1,000 pounds of direct materials at an average cost per pound of $37 and 475 direct manufacturing labor hours at an average wage of $18.75 per hour.

The direct material efficiency variance during July is:

$8,000 unfavorable

$5,000 favorable

$5,000 unfavorable

$7,400 favorable