A manufacturer buys components from suppliers to be included in complete units. A unit requires three components at a standard cost of $2.50 each. The entity bought 30,000 components in September at a total cost of $78,000. It used 28,000 components in September production and completed 9,000 units.

Question

For September, the purchase price variance was

A.$2,800 favorable.

B.$3,000 unfavorable.

C.$2,700 unfavorable.

D.$2,700 favorable.