Dazzle Toy Company Gathered the Following Actual Results for the Current

Dazzle Toy Company gathered the following actual results for the current month: $$\begin{array} { | l | l | } \hline \text { Actual amounts: } & \\\text { Units produced } & 4,000 \\\hline \text { Direct materials purchased and used (5,000 lbs.) } & \$ 22,500 \\\hline \text { Direct labor cost (4,500 hours) } & \$ 51,750 \\\hline \text { Manufacturing averhead costs incurred } & \$ 24,000 \\\hline\end{array}$$ Budgeted production and standard costs were:
$\begin{array} { | l | l | } \hline \text { Budgeted production } & 3,500 \text { units } \\\hline \text { Direct materials } & 2 \mathrm { lbs } / \mathrm { unit } \text { at } \$ 4.25 / \mathrm { lb } . \\\hline \text { Direct labor } & 1.5 \mathrm { hrs } . / \mathrm { unit } \text { at } \$ 12.00 / \mathrm { hr } . \\\hline \text { Variable manufacturing overhead } & \$ 5 \text { per unit } \\\hline \text { Fixed manufacturing overhead } & \$ 21,000 \\\hline\end{array}$
- What is the direct materials price variance?

A) $1,250 unfavorable
B) $2,000 favorable
C) $1,250 favorable
D) $2,000 unfavorable