Holy SmokesCompany has the following information available:

Budgeted cost of direct materials at1,000,000 units$1,000,000

Budgeted cost of direct materials at950,000 units$950,000

Actual cost of direct materials at950,000 units$975,000

Actual level ofoutput(units)950,000

Planned level ofoutput(units)1,000,000

The cost driver of product costs is units of output. What is the flexible budget variance for direct material costs?

A) $25,000 Unfavorable

B) $25,000 Favorable

C) $50,000 Favorable

D) $50,000 Unfavorable