2. Direct materials 5 kgs x $8 per kg

Direct labour 4 hours x $12 per hour

1,300 units produced in February with the following results:

Direct materials used 6 600 kgs costing $50,160

Direct labour 5 330 hours costing $65,026

What is the companys Materials Price Variance?

a.

$800 unfavourable

b.

$2,640 favourable

c.

$2,640 unfavourable

d.

$800 favourable