Digital Art manufactures decorative wall hangings. The company uses standard costs to prepare its flexible budget. For the second quarter of 20x8, direct material and direct labor standards for the companys most popular product were as follows: Direct material: 1 pound per unit; $12 per pound Direct labor: 4 hours per unit; $15 per hour During the quarter, Digital produced 5,000 units. At the end of the quarter, materials records showed that the company used 7,000 pounds of materials, with actual materials costs of $98,000. Based on these data, what is the direct materials efficiency variance? Multiple Choice $24,000 F. $24,000 U. $2,000 U. $2,000 F. None of the answers is correct.