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A company has established 5 pounds of Material J at $2 per pound as the standard for the material in its Product Z. The company has just produced 1,000 units of this product, using 5,200 pounds of Material J that cost $9,880.The direct materials price variance is:.
a) $520 unfavorable.
b) $400 unfavorable.
c) $120 favorable.
d) $520 favorable.
e) $400 favorable.
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