Gutierrez Company budgeted 10,000 kilograms of direct materials costing $21.50 per kilogram to make 5,000 units of product. The company actually purchased and used 10,200 kilograms of direct materials costing $24.00 per kilogram to make the 5,000 units.

What is the direct materials price variance at the Gutierrez Company?

A.

$25,500 favourable

B.

$25,000 unfavourable

C.

$25,500 unfavourable

D.

$25,000 favourable