Razzle Baking Company gathered the following actual results for the current month:

Actual amounts:

Units produced 5,500

Direct materials purchased and used (7,500 lbs.) $25,000

Budgeted production and standard costs were:

Budgeted production 5,000 units

Direct materials 1.5 lbs./unit at $3/lb.

What is the direct materials price variance?

$2,500 unfavorable

$2,500 favorable

$2,750 favorable

$2,750 unfavorable