A Company Uses the Following Standard Costs to Produce a Single

Multiple Choice

A company uses the following standard costs to produce a single unit of output. During the latest month,the company purchased and used 58,000 pounds of direct materials at a price of $1.00 per pound to produce 10,000 units of output.Direct labor costs for the month totaled $56,350 based on 4,900 direct labor hours worked.Variable manufacturing overhead costs incurred totaled $15,000 and fixed manufacturing overhead incurred was $10,400.Based on this information,the direct materials price variance for the month was:

A) $6,000 unfavorable
B) $1,800 favorable
C) $1,000 favorable
D) $5,800 unfavorable
E) $1,800 unfavorable