Matinna Co All Materials Purchased During the Month Were Issued to Production

Multiple Choice

Matinna Co. maintains no inventories and has the following data pertaining to one of its direct materials in July: $\begin{array}{lrr}\text { Standard quantity of direct materials for the units manufactured (SQ) } & 30,000 \\\text { Direct materials purchases-actual cost } & \$ 63,000 \\\text { Standard price per unit of direct materials (SP) } & \$ 2.00 \\\text { Direct material efficiency variance-favorable } & \$ 4,500\end{array}$ All materials purchased during the month were issued to production.
What was the company's direct materials flexible-budget (FB) variance for July (rounded to the nearest dollar) ?

A) $1,500 favorable.
B) $3,000 unfavorable.
C) $3,000 favorable.
D) $7,500 unfavorable.
E) $7,500 favorable.