Myles Company Budgeted 10,500 Pounds of Direct Materials Costing $23

Multiple Choice

Myles Company budgeted 10,500 pounds of direct materials costing $23.50 per pound to make 5,300 units of product.The company actually purchased 11,000 pounds of direct materials costing $25.00 per pound to make the 5,300 units.What is the direct materials price variance?

A) $16,500 favorable
B) $16,500 unfavorable
C) $15,750 unfavorable
D) $15,750 favorable