A company is budgeting to produce 400 units of product X in the next month. One unit of product X requires 10kg of material which is purchased at a budgeted price of $0.5 per kg. Actually, the company produced only 375 units of product X. Material was bough for $0.6 per kg and 9.8 kg was used to make one unit of product X.

What is the variance between the flexed budgeted material cost and actual cost of material in the month (to the nearest $1)?

a) 330 favourable

b) 330 adverse

c) 205 favourable

d) 205 adverse

Personal note: I got 1875 for my flexed budget, and 2205 for my actual budget so i'm not sure now whether or not 330 is favourable or adverse. Thank you!!