Hushovd Iron Works has collected the following data for its Thunderbolt line of products:

Direct materials standard 10 pounds per unit

Direct materials standard cost $0.75 per pound

Actual material purchased cost $0.85 per pound

Actual direct materials purchased 40,000 pounds

Actual Quantity (AQ) of Direct Materials Used (AQU) 35,000 pounds

Actual finished goods produced 4,500 units

What is the direct material price variance?

A.

$4,000 unfavorable

B.

$3,500 favorable

C.

$4,000 favorable

D.

$3,500 unfavorable