HAF produces a single product. The standard production requirement for each unit requires 2 kilograms of a single material at a standard cost of $7 per kilogram. During the last year, HAF purchased 10,000 kilograms of materials at total cost of $58,000. Also last year, HAF manufactured 3,000 units of product using a total of 7,000 kg. What was the HAF's materials purchase price variance for the year?

Multiple Choice

• Nil

• $12,000 favourable

• $12,000 unfavourable

• $2,800 unfavourable