A manufacturer reports the following for the month:

200 units produced

2 pounds, budget quantity per unit produced

$4.50 budget price per pound of direct materials

450 pounds, actual quantity purchased

375 pounds, actual quantity used in production

$2,160 cost of materials purchases

Determine the direct material price variance.

a.

120

b.

135

c.

472.50

d.

576

e.

none of the above