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X operates a standard marginal costing system. The following budgeted and standard cost information is available: Budgeted production and sales 10,000 units Direct material cost

X operates a standard marginal costing system. The following budgeted and standard cost information is available:

Budgeted production and sales 10,000 units

Direct material cost 3 kg x $10 $30 per unit

Actual results for the period were as follows:

Production and sales 11,500 units

Direct material 36,000 kg $342,000

The direct material price variance is

A. $18,000 adverse

B. $3,000 adverse

C. $3,000 favourable

D. $18,000 favourable

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