Vaughn Company prepared the following data in its static budget based on 112500 machine hours:

Direct Materials $ 450000

Direct Labour 222000

Variable Overhead 1120000

Fixed Overhead 2098000

Actual Results: Machine Hours 122500 hours

Direct Materials $471000

Direct Labour 246000

Variable Overhead 1152000

Fixed Overhead 2112000

What was the difference between the actual and budgeted Direct Material costs at the actual level of activity?

$21000 unfavourable

$19000 unfavourable

$21000 favourable

$19000 favourable