Connor Co. uses a standard cost system and has established the following material and labor standards to produce one unit of product: Direct materials Direct labor Standard Quantity 2.5 pounds 0.6 hours Standard Price $2.75 per pound $10 per hour Connor estimates it will produce 6,400 units for the month of March. During March, the following activity was recorded by the company relating to actual production: The company produced 6,000 units during the month. A total of 16,000 pounds of materials were purchased and used at a cost of $3.00 per lb. . Which of the following statements is true? The materials price variance is $2,750 favorable. The materials price variance is $4,000 unfavorable. The materials price variance is $1,600 favorable. The materials price variance is $4,000 favorable