The standard materials cost to produce 1 unit of Product R is 7 pounds of material at a standard price of $70 per pound. In manufacturing 5,900 units, 38,400 pounds of material were used at a cost of $72 per pound. What is the direct materials price variance?

Multiple Choice

• $203,000 favorable.

• $76,800 favorable.

• $76,800 unfavorable.

• $203,000 unfavorable.

• $126,200 favorable.