Empty Company maintains no inventories and has the following data pertaining to one of its direct materials in July:

Standard quantity of direct materials for the units manufactured (SQ)	30,700
Direct materials purchasesactual cost	$ 65,000
Standard price per unit of direct materials (SP)	$ 2.00
Direct material efficiency variancefavorable	$ 5,200

All materials purchased during the month were issued to production. What was the direct materials price variance for July?

Multiple Choice

$1,600 favorable.

$3,600 unfavorable.

$3,600 favorable.

$8,800 favorable.

$8,800 unfavorable.