Syrup Traps, Inc. manufactures professional grade waffle irons. The standard direct material unit cost for its most popular waffle iron is $48 per waffle iron. The standard input ratio for direct material is 2.4 ounces per waffle iron. In a recent month, 5,100 ounces of direct material were used in the production of 2,040 waffle irons. The actual cost of direct material purchased during the month was $90,000. A favorable total direct material variance of $6,120 was reported for the month.

Which of the following statements is incorrect with regard to the direct material variances calculated for the above data?

A.

The direct material price variance is $10,000 favorable.

B.

The direct material quantity variance is $4,080 unfavorable.

C.

The actual price paid per ounce of direct material was $2.00 more than the standard price per ounce of direct material.

D.

The purchases manager is held responsible for the direct material price variance.

E.

The net decrease in the companys raw material inventory during the period was 100 ounces.