Empty Company maintains no inventories and has the following data pertaining to one of its direct materials in July:

Standard quantity of direct materials for the units manufactured (SQ)	31,000
Direct materials purchasesactual cost	$ 97,000
Standard price per unit of direct materials (SP)	$ 3.00
Direct material efficiency variancefavorable	$ 5,500

All materials purchased during the month were issued to production.

What was the company's direct materials flexible-budget (FB) variance for July?

Multiple Choice

• $1,500 favorable.

• $4,000 unfavorable.

• $4,000 favorable.

• $9,500 unfavorable.

• $9,500 favorable.