Answer the Following Questions Using the Information Below:
Animent Industries

Multiple Choice

Answer the following questions using the information below:
Animent Industries, Inc. (AII) , developed standard costs for direct material and direct labor. In 2015, AII estimated the following standard costs for one of their major products, the 10-gallon plastic container.
$\begin{array}{lll}&\text { Budgeted quantity }&\text { Budgeted price }\\\text { Direct materials } & 0.10 \text { pounds } & \$ 60 \text { per pound } \\\text { Direct labor } & 0.05 \text { hours } & \$ 30 \text { per hour }\end{array}$ During June, AII produced and sold 20,000 containers using 1,900 pounds of direct materials at an average cost per pound of $64 and 1,000 direct manufacturing labor-hours at an average wage of $30.50 per hour.
-The direct material price variance during June is ________.

A) $7,600 unfavorable
B) $1,600 favorable
C) $1,600 unfavorable
D) $500 favorable