A company makes table lamps, for which the following standards have been developed:

Standard Inputs

Expected for Each

Unit of Output

Standard Price

Expected per

Unit of Output

Direct materials

20 kilograms

$2 per kilogram

Direct labour

6 hours

$8 per hour

During January, production of 100 lamps was expected, but 110 lamps were actually completed. Direct materials purchased and used were 2,100 kilograms at an actual price of $2.20 per kilogram. Direct labour cost for the month was $5,310, and the actual pay per hour was $9.00.

The direct-material rate variance for January is

$420 favourable.

$400 favourable.

$400 unfavourable.

$420 unfavourable.