Johnson Inc. recently completed the production for the month of June and is reviewing its results. Assume that the beginning and closing inventory for June are zero. The relevant data for the review is provided below:

Number of units produced in June

45,000

Budgeted quantity of direct materials per unit

5.0

pounds

Budgeted price for Direct material per pound

$5.50

Direct material purchased and consumed during June

229,000

pounds

Cost of purchasing direct materials in June

$1,234,500

What is the direct material quantity (i.e. efficiency) variance?

Select ONE option.

A.

$25,000

Unfavorable

B.

$22,000

Favorable

C.

$22,000

Unfavorable

D.

$25,000

Favorable

E.

$21,563.32

Unfavorable