The Bond Company uses standard costing and has established the following direct material and direct labor standards for each unit of production that it makes and sells for $25.

Direct Materials 2 gallons at $4 per gallon

Direct labor 0.5 hours at $8 per hour

During September, the company made 6,000 units and incurred the following costs:

Direct materials purchased 13,400 gallons at $4.10 per gallon

Direct materials used in production 12,600 gallons

Direct labor used 2,800 hours at $7.65 per hour

The materials price variance for September was:

Group of answer choices

$2,800 favorable

$1,340 unfavorable

$1,260 favorable

$1,340 favorable

$1,260 unfavorable