QUESTION 18

1. Huron Company produces a commercial cleaning compound known as Zoom. For one unit of Zoom, the following information is given:

   	Standard Quantity for 1 unit of Zoom		Standard Price
   Direct material	4.6	pounds	$	2.50	per pound

   During the most recent month, the following actual results were recorded:

   • 15,000 pounds of the material were purchased at a cost of $2.00 per pound (total $30,000).
   • The company produced 3,000 units of Zoom, using all 15,000 pounds of the material.

   What is the direct material price variance?

   	A.	$3,000, Unfavorable
   	B.	$7,500, Favorable
   	C.	$4,500, Favorable
   	D.	$2,400, Unfavorable