A company established a direct material standard of 2 pounds of material at a cost of $6 per pound for unit produced. During August the company produced 6,000 units of product; 10,000 pounds of direct material that cost $6.50 per pound were used in the production process. Compute the direct material price variance for August.

	$12,000 unfavorable
	$7,000 favorable
	$5,000 favorable
	$5,000 unfavorable
	$12,000 favorable