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:
$\begin{array}{|l|r|}\hline \text { Actual amount of direct materials purchased and used } & 20,000 \text { kilograms } \\\hline \text { Actual direct material costs } & \$ 40,000 \\\hline \text { Standard price of direct materials } & \$ 2.10 \text { per kilogram } \\\hline \text { Direct materials quantity variance-favourable } & \$ 3,000 \\\hline\end{array}$
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.