A Company Established a Direct Material Standard of 2 Pounds

A company established a direct material standard of 2 pounds of material at a cost of $6 per pound for unit produced. During August the company produced 6,000 units of product. 10,000 pounds of direct material which cost $6.50 per pound were used in the production process. Compute the direct material price variance for August.

A) $5,000 unfavorable.
B) $12,000 unfavorable.
C) $5,000 favorable.
D) $12,000 favorable.
E) $7,000 favorable.