Starbucks Corporation is a successful adopter of the standard costing system. Starbucks has a materials standard of 1 pound per unit of output. Each pound has a standard price of $25 per pound. During July, Starbucks paid $139,000 for 4,950 pounds, which it used to produce 4,740 units. What is the direct materials price variance?

Multiple Choice

• $34,850 unfavorable

• $14,350 favorable

• $20,500 unfavorable

• $15,250 unfavorable