The following information is from the static budget of AAA plc for 2016 .

Expected production and sales	5,400 units
Expected selling price per unit	$ 850
Total fixed costs	$1,110,000

Standard quantities, standard prices and standard unit costs follow for direct materials and direct manufacturing labor:

	Standard Quantity	Standard Price	Standard Unit Cost
Direct materials	10 pounds	$10 per pound	$100
Direct manufacturing labor	4 hours	$26 per hour	$104

During 2016, actual number of units produced and sold was 5,350, at an average selling price of $800. Direct materials of 70,000 pounds were purchased at $16.42 per pound. Direct manufacturing labor hours actually were 17,000 at the rate of $ 33.70 per hour. As a result, actual direct manufacturing labor costs were $572,900. Actual fixed costs were $1,200,000. The beginning and ending inventories were 0 and 10,000 pounds (at $16.42 per pound) respectively.

The direct material efficiency variance is ________.

Select one:

a. $65,000 unfavorable

b. $165,000 unfavorable

c. $65,000 favorable

d. NONE OF THE GIVEN OPTIONS

e. $165,000 favorable

f. $114,400 favorable

g. $114,400 unfavorable