Tommy's Toys produces two types of toys: trains and dolls. Tommy's uses stainless steel to manufacture the trains and plastic to manufacture the dolls. Information regarding the usage of steel and plastic for the past year follows:

Product Names	Steel	Plastic
Direct materials information
Standard pounds per unit	2 lb.	1 lb.
Standard Price (SP) per pound	$3.00	?
Actual Quantity (AQ) used per unit	2.5 lbs.	2.5 lbs.
Actual Price (AP) paid for material	$2.50	$2.50
Actual Quantity Purchased (AQP) and used	2,700 lbs.	700 lbs.
Price variance	?	$1,309 F
Quantity variance	$413 U	?
Flexible budget variance	?	$884 F
Number of units produced	275	450

What is the direct materials flexible budget variance for steel used to manufacture the trains?

A.

$ 1 comma 763$1,763

unfavorable

B.

$ 1 comma 763$1,763

favorable

C.

$ 937$937

favorable

D.

$ 937$937

unfavorable