The standard direct material cost to produce a unit of Lem is 4 meters of material at $2.50 per meter. During May 2005, 4,200 meters of material costing $10,080 were purchased and used to produce 1,000 units of Lem.
What was the material price variance for May 2005?
a) $400 favorable.
b) $420 favorable.
c) $80 unfavorable.
d) $480 unfavorable.