A Company Developed the Following Per-Unit Standards for Its Product

Multiple Choice

A company developed the following per-unit standards for its product: 2 pounds of direct materials at $4 per pound. Last month 1500 pounds of direct materials were purchased for $5700. The direct materials price variance for last month was

A) $5700 favorable.
B) $300 favorable.
C) $150 favorable.
D) $300 unfavorable.