Mason, Inc. uses a standard costing system. Overhead costs are allocated based on direct labor hours. The standard variable overhead and fixed overhead rates are $1 and $5 per direct labor hour, respectively. Data relevant for the current period include: Direct materials purchased 50,000 lbs. @ $12 per lb. Direct materials used 50,000 lbs. Standard quantity of direct materials for actual production 45,000 lbs. Direct materials standard price $13 per ib. Direct labor costs incurred 75,000 hours @ $12 per hour Standard direct labor hours for actual production 78,000 hours Standard direct labor cost per hour $11 per hour Variable overhead costs incurred $77,070 Fixed overhead costs incurred $381,920 The direct materials efficiency variance is $60,000 Favorable $60,000 Unfavorable $65,000 Favorable $65,000 Unfavorable