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

Standard costs assigned:
Direct materials standard cost (406,000 units @ $2.10/unit)	$	852,600
Actual costs:
Direct Materials costs incurred (404,850 units @ $2.30/unit)	$	931,155

Multiple Choice

• $852,600 Favorable.

• $852,600 Unfavorable.

• $80,970 Unfavorable.

• $80,970 Favorable.

• $81,200 Favorable.