Standard	Lbs Standard
Material	Quantity (lbs)	Cost/Lb	Total Cost
O	0	$0.10	$0
H	80	$0.08	$6.40
M	120	$0.02	$2.40
	200		$8.80

A company makes a product using two materials, one of which is interchangeable with a third material. The standards for producing one 200-pound batch are presented below. The last 200-pound batch was produced using 140 pounds of M and 90 pounds of O. The price of M was $.03 per pound and the actual price of O was $.10. Is the materials mix variance favorable or unfavorable?