Question 3 Alpha Manufacturers' (AM) standards anticipate that there will be 3 pounds of raw material used for every unit of finished goods produced. AM began the month of May with 5,000 pounds of raw material, purchased 15,000 pounds for $19,500 and ended the month with 4,000 pounds on hand. The company produced 5,000 units of finished goods. The company estimates standard costs at $1.50 per pound. The materials price and efficiency variances for the month of May were: Price Variance Efficiency Variance $1,500 F a. $3,000 U b. $3,000 F $ 0 c. $3,000 F $1,500 U d. $3,200 F $1,500 U