Kermit Enterprises has collected the following data on one of its products:

Direct materials standard(4lbs.@$1lb.): $4 per finished unit

Total Direct Materials Cost Variance-Favorable: $7,500

Actual direct materials used: 150,000 lbs.

Actual finished units produced: 30,000 units

The direct materials price variance is:

A. $30,000 favorable.

B. $30,000 unfavorable.

C. $22,500 favorable.

D. $37,500 unfavorable.

E. $37,500 favorable.