Animent Industries, Inc. (AII), developed standard costs for direct material and direct labor. In 2016, AII estimated the following standard costs for one of their major products, the 10-gallon plastic container.

Budgeted quantity Budgeted price

Direct materials 0.10 pounds $60 per pound

Direct labor 0.05 hours $30 per hour

During June, AII produced and sold 20,000 containers using 1,900 pounds of direct materials at an average cost per pound of $64 and 1,000 direct manufacturing labor-hours at an average wage of $30.50 per hour.

June's direct material flexible-budget variance is ________.

		$1,600 unfavorable
		$7,200 unfavorable
		$500 favorable
		$600 favorable