The following standard costing information is available:

Budgeted quantityBudgeted priceDirect materials0.40 pounds$20 per poundDirect labor0.80 hours$15 per hour

During July, the company produced and sold 4,000 containers using 1,700 pounds of direct materials at an average cost per pound of $15 and 3,225 direct manufacturing labor hours at an average wage of $15.25 per hour.

The direct material price variance during July is:

$20,000 unfavorable

$8,500 favorable

$8,500 unfavorable

$2,000 unfavorable