Assume that the standard to make one unit of product requires 10 kgs of materials at a price of $3 per kg. In July, 34,000 kgs of materials were purchased for $100,800, and 20,800 kgs were used to produce 2,000 units of finished product. What is the direct materials efficiency variance?

Options:

$2,400 U

$1,200 F

$1,200 U

$2,400 F