Choice "B", $17,500 favorable is correct per computations below: Set up the PURE DADS mnemonic as shown below where PU is the materials variance and RE is the Labor variance. Remember that the Difference is ALWAYS Standard minus Actual. Plug in the amounts that are known: Enter amount of the Usage variance at $2,500U, compute the amount of the difference associated with the usage variance (17,000 standard units minus 17,500 actual units) and then in item (A) algebraically determine the amount of standard costs at $5.00. Calculate the amount of actual costs per unit based on the information given: $70,000 in total costs divided by 17,500 pounds purchased is $4.00 actual cost per unit. Compute the difference (B) between Standard cost per unit of $5.00 and actual cost per unit of $4.00 to arrive at a difference of $1.00. Compute the price variance (C) as the product of the difference in standard and actual costs per unit and the actual pounds used as given in the problem.

Choices "c", "a", and "d" are incorrect, based on the above computation.