If the Direct Materials Purchased Costs $200 Per Unit While

Multiple Choice

If the direct materials purchased costs $200 per unit while the standard price for direct materials is $180, and the total direct material used is 1,000 units while the standard direct materials allowed for actual production is 980 units,

A) the direct materials quantity variance will be favorable.
B) the direct materials quantity variance will be unfavorable.
C) the direct materials price variance will be favorable.
D) there will be no direct materials price variance.