Bonita Company budgeted the following cost standards for the current year:

Direct materials (2 kg of plastic at $6.00 per kilogram)		$12.00
Direct labour (2 hours at $12 per hour)		24.00
Variable manufacturing overhead		10.40
Fixed manufacturing overhead		7.50
Total standard cost per unit		$53.90

Actual costs for producing 2,740 units were as follows:

Direct materials used		5,940	kg
Direct materials purchased (6,580 kg)		$38,822
Direct labour (6,920 hours)		$69,200
Variable manufacturing costs		$32,700
Fixed manufacturing costs		$18,000

(a)

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Calculate the materials price variance for materials purchased. (Round per unit calculations to 2 decimal places, e.g. 1.25 and final answers to 0 decimal places, e.g. 125.)

Materials price variance

$enter the materials price variance in dollars rounded to 0 decimal places

select an option UnfavourableFavourableNeither favourable nor unfavourable