Answer:
Option (B) $3,570 unfavorable
Explanation:
Data provided in the question:
Direct materials standard (6 lbs. @ $2/lb.) = $ 12 per finished unit
Actual direct materials used = 243,000 lbs.
Actual finished units produced = 40,000 units
Actual cost of direct materials used = $483,570
Now,
Total direct materials variance
= Budgeted cost of direct material - Actual cost of direct materials used
= ( 40,000 × $12 ) - $483,570
= $480,000- $483,570
= - $3,570
The negative value depicts Unfavorable
Hence,
Option (B) $3,570 unfavorable
