The standard costs and actual costs for direct materials for the manufacture of 2,900 actual units of product are as follows:
Standard Costs
Direct materials 1,040 kilograms at $8.76
Actual Costs
Direct materials 2,900 kilograms at $8.00
The direct materials price variance is
a.$790 favorable
b.$790 unfavorable
c.$2,204 unfavorable
d.$2,204 favorable