Nolan Manufacturing uses a standard cost system. Standards for direct materials are as follows: Direct materials (pounds per unit of output) Cost per pound of direct materials $8 The company plans to produce 200 units and has purchased on account 2,900 pounds of direct materials at a net cost of $22,550. What is A. Raw Materials Inventory 23,200 Direct Materials Cost Variance 650 Accounts Payable 22,550 B. Raw Materials Inventory 23,850 Direct Materials Cost Variance Accounts Payable 650 23,200 OC. Raw Materials Inventory 23,200 Direct Materials Cost Variance Accounts Payable OD. Raw Materials Inventory Direct Materials Cost Variance Accounts Payable 650 23,850. 22,550 650 23,200