Information on Pruitt Company's direct-material costs for the month of July 2005 was as follows:

Actual quantity purchased30,000 units

Actual unit purchase price$2.75

Materials purchase-price variance

unfavorable (based on purchases)$1,500

Standard quantity allowed for actual production24,000 units

Actual quantity used22,000 units

[CPA Adapted]For July 2005 there was a favorable direct-materials efficiency variance of

a.$7,950.

b.$5,500.

c.$5,400.

d.$5,600.