A company provided the following direct materials cost information. Compute the direct materials price variance.

Standard costs assigned:

Direct materials standard cost (420,000 units @ $3.20/unit) $1,344,000

Actual costs:

Direct Materials costs incurred (417,100 units @ $3.30/unit) $1,376,430

Multiple Choice

• $1,344,000 Favorable.
• $1,344,000 Unfavorable.
• $41,710 Unfavorable.
• $41,710 Favorable.
• $42,000 Favorable.