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Problem 1: Ivanhoe Manufacturing Company purchased 14800 switches to make 6400 units. The standard allows for 2 switches per unit. The company actually used 15300 to produce the 6400 units. Ivanhoe budgeted $ 0.73 per switch but had to pay $ 0.78 per switch. What is Ivanhoe's direct materials price variance for the period?
Option 1: $ 520 unfavorable
Option 2: $ 765 unfavorable
Option 3: $ 740 unfavorable
Option 4: $ 640 unfavorable
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