2) Emerald Marine Stores Company manufactures special metallic materials and decorative fittings 2) for luxury yachts that require highly skilled labor. Emerald uses standard costs to prepare its flexible budget. For the first quarter of 2015, direct material and direct labor standards for one of their popular products were as follows: Direct materials: 1 pound per unit; $12 per pound Direct labor: 4 hours per unit; $15 per hour Emerald produced 5,000 units during the quarter. At the end of the quarter, an examination of the materials records showed that the company used 7,000 pounds of materials and actual total material costs were $98,000. What is the direct materials cost variance? B) $14,000 Unfavorable D) $38,000 Unfavorable A) $38,000 Favorable C) $14,000 Favorable