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A company developed the following per-unit standards for its product: 5 kilograms of direct materials at $3.00 per kilogram. Last month, 1000 kilograms of direct
A company developed the following per-unit standards for its product: 5 kilograms of direct materials at $3.00 per kilogram. Last month, 1000 kilograms of direct materials were purchased for $2800. Also last month, 650 kilograms of direct materials were used to produce 130 units. What was the direct materials price variance at the time of purchase?
a)$12200 favourable
b)$200 favourable
c)$12200 unfavourable
d)$200 unfavourable
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