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Charlie Company produces a product that requires 2 standard pounds per unit. The standard price is $3.75 per pound. If 15,000 units used 35,000 pounds,

Charlie Company produces a product that requires 2 standard pounds per unit. The standard price is $3.75 per pound. If 15,000 units used 35,000 pounds, which were purchased at $4.00 per pound, the direct materials (total) cost variance is _____.

A. $8,750 unfavorable

B. $18,750 unfavorable

C. $27,500 favorable

D. $27,500 unfavorable

E. none of the above

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