A company uses the following standard costs to produce a single unit of output.

Direct materials 6 pounds at $0.70 per pound=$4.20

Direct labor 0.4 hour at $10.00 per hour=$4.00

Manufacturing overhead 0.4 hour at $3.90 per hour=$1.56

During the latest month, the company purchased and used 57,000 pounds of direct materials at a price of $0.80 per pound to produce 10,000 units of output. Direct labor costs for the month totaled $36,864 based on 3,840 direct labor hours worked. Variable manufacturing overhead costs incurred totaled $12,600 and fixed manufacturing overhead incurred was $10,000. Based on this information, the direct materials price variance for the month was:

Multiple Choice

• $4,000 unfavorable
• $9,300 favorable
• $1,000 favorable
• $5,700 unfavorable
• $9,300 unfavorable