Fletcher Company Collected the Following Data Regarding Production of One

Fletcher Company collected the following data regarding production of one of its products. Compute the direct materials price variance. $$\begin{array} { l rl} \text { Direct materlals stardard (6lbs. @ \$2/16.) } & \$ 12 & \text { per finished unit } \\\text { Actual direct materials used } & 243,000 & \text { lbs. } \\\text { Actual finished units produced } & 40,000 & \text { units }\\\text { Actual cost of direct materials used}&\$483,570\\\end{array}$$

A) $2,430 unfavorable.
B) $3,570 unfavorable.
C) $2,430 favorable.
D) $6,000 unfavorable.
E) $3,570 favorable.

Correct Answer:

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