Jackson Industries uses a standard cost system in which direct materials inventory is carried at standard cost. Jackson has established the following standards for one unit of product:

	Standard Quantity or Hours		Standard Price or Rate		Standard Cost Per Unit
Direct materials	5	pounds	$2.40	per pound	$12.00
Direct labor	1.50	hours	$7.00	per hour	$10.50

During May, Jackson purchased 77,800 pounds of direct material at a total cost of $202,280. The total factory wages for May were $141,800, 90 percent of which were for direct labor. Jackson manufactured 12,000 units of product during May using 57,700 pounds of direct material and 18,500 direct labor-hours. The price variance for the direct material acquired by Jackson Industries during May is:

$12,160 Favorable

$15,560 Unfavorable

$18,560 Favorable

$12,160 Unfavorable