A company uses a standard cost system to account for the cost of production of its only product. The standards for the production of one unit of the product are as follows: Direct materials: 10 metres of Item One at $0.80 per metre and 3 metres of Item Two at $1.50 per metre. There was no inventory on hand at the beginning of the year. The following is a summary of costs and related data for production during the year. 70000 metres of Item One were purchased at $0.85 per metre. 20000 metres of Item Two were purchased at $1.40 per metre. (All purchases are charged in at standard.) 6000 units were produced which required 60800 metres of Item One and 17800 metres of Item Two. The balance in the Materials Usage Variance account for Item Two was