Parallel Enterprises has collected the following data on one of its products.During the period the company produced 25,000 units.The direct materials price variance is:

A) $27,500 unfavorable.
B) $50,000 unfavorable.
C) $50,000 favorable.
D) $22,500 unfavorable.
E) $22,500 favorable.

Direct Materials Price Variance

The difference between the actual cost and standard cost of direct materials used in production, indicating how effectively a company is purchasing its raw materials.

Data Collected

Information gathered through observation, experimentation, surveys, or other methods, which can be analyzed to gain insights or make decisions.