A company reports the following for one of its products.

Direct materials standard $(5$ pounds @ $$10$ per pound$)$

Actual units produced

Actual cost of direct materials used

$$50$ per unit

$80,000$ units

$$4,029,000$

Compute the total direct materials variance and identify it as favorable or unfavorable.

Note: Indicate the effect of the variance by selecting favorable, unfavorable, or no variance.

Direct materials variance