James Company manufactures t-shirts. During the year, it manufactured 250,000 t-shirts, using 2 hours of direct labor at a rate of $8.50 per hour. The materials and labor standards for manufacturing the t-shirts are: Direct materials (5 yards of fabric @ $3 per yard) $18 Direct labor (2.5 hours @ $8.00 per hour) 17 It took James 1,400,000 yards at $2.50 per yard to make the 250,000 t-shirts. What is James' material efficiency variance?

1,000,000 u

950,000 f

450,000 u

550,000 u