$$Gumbo$$ was added to ABC Company$$s product line a year ago. Standard and actual materials usage and costs are as follows:

Standard

Actual $(500$ units$)$

Price

$$4\mathrm{.}50/$kg

$$8,400$

Quantity

$3\mathrm{.}0$ kg$/$unit

$2,400$ kg

The materials price variance for Gumbo is:

Question $10$Answer

a$.$

$$2,400$ favourable

b$.$

$$9,300$ unfavourable

c$.$

$$9,300$ favourable

d$.$

$$2,400$ unfavourable