The materials budget for producing 5,000 units of product is 25,000 liters at $3.30 per liter. In the first month of production, the company purchased 30,000 liters at a cost of $105,000, of which 28,000 liters were used to produce an actual output of 5,900 units. What was the material price variance?
a. $12,600 adverse
b. $6,000 favorable
c. $12,600 favorable
d. $6,000 adverse