Information on Fleming Company's Direct Material Costs Follows What Was the Company's Direct Material Price Variance?
A) $1,000

Multiple Choice

Information on Fleming Company's direct material costs follows: $\begin{array} { l c } \text { Actual amount of direct materials purchased and used } & 20,000 \text { kilograms } \\\text { Actual direct material costs } & \$ 40,000 \\\text { Standard price of direct materials } & \$ 2.10 \text { per kilogram } \\\text { Direct materials quantity variance - favourable } & \$ 3,000\end{array}$ What was the company's direct material price variance?

A) $1,000 favourable.
B) $1,000 unfavourable.
C) $2,000 favourable.
D) $2,000 unfavourable.