A company developed the following per-unit standards for its product: 2 gallons of direct materials at $8 per gallon. Last month, 3,000 gallons of direct materials were purchased for $22,800. The direct materials price variance for last month was

Select one:

a.

$22,800 favorable.

b.

$600 favorable.

c.

$1,200 favorable.

d.

$1,200 unfavorable.