Tractor Corporation produces toy tractors. The company uses the following direct cost categories:

Category	Standard Inputs for 1 output	Std. Cost per input
Direct Materials	4.00	$12.50
Direct Labour	1.40	9.50
Direct Marketing	0.54	5.50

Actual performance and budgeted performance for the company is shown below: Actual output: (in units) 5,000 Direct Materials:

Materials costs	$299,000
Input purchased and used	23,000
Actual price per input	$13.00

Direct Manufacturing Labour:

Labour costs	$ 95,000
Labour-hours of input	9,500
Actual price per hour	$10.00

Direct Marketing Labour:

Labour costs	$ 40,000
Labour-hours of input	5,000
Actual price per hour	$ 8.00

Question: What is the efficiency variance for direct materials?

		a) $39,000 unfavourable
		b) $23,750 unfavourable
		c) $39,000 favourable
		d) $47,350 favourable
		e) $37,500 unfavourable