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

Standard costs assigned:
Direct materials standard cost (419,000 units @ $3.00/unit)	$	1,257,000
Actual costs:
Direct Materials costs incurred (416,000 units @ $3.20/unit)	$	1,331,200

Multiple Choice

• $1,257,000 Favorable.

• $1,257,000 Unfavorable.

• $83,200 Unfavorable.

• $83,200 Favorable.

• $83,800 Favorable.