The standard materials cost to produce 1 unit of Product R is 6 pounds of material at a standard price of $50 per pound. In manufacturing 8,000 units, 47,000 pounds of material were used at a cost of $51 per pound. What is the direct materials price variance?
A. $50,000 favorable.
B. $3,000 favorable.
C. $47,000 unfavorable.
D. $50,000 unfavorable.
E. $47,000 favorable.
Answer: C
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