Southern Company manufactures Product X. The standard cost of one unit of output is $12.00 (four pieces at $3.00 per piece). During the first quarter, 5,000 units were made, at an actual cost of $10.50 per unit (three pieces were $3.50 per piece). What is the material price variance?

$7,500 Favorable

$10,000 Favorable

$7,500 Unfavorable

$10,000 Unfavorable