The Following Information Is Provided by the Atlas Company: What

Multiple Choice

The following information is provided by the Atlas Company: What is the direct material price variance?
$$\begin{array} { | l | l | } \hline \text { Actual direct material cost } & \$ 20,000 \\\hline \text { Standard direct material cost } & \$ 24,000 \\\hline \text { Direct material usage variance } & \$ 3,000 \text { favorable }\\\hline\end{array}$$

A) $1,000 favorable
B) $1,000 unfavorable
C) $5,000 unfavorable
D) Not enough information is provided