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Harry Ltd . managers have the following standards for manufacturing one product. To produce one unit of the product it is needed to use a

Harry Ltd. managers have the following standards for manufacturing one product. To produce one unit of the product it is needed to use a specific material. Managers of Harry Ltd. have budgeted that it is needed to use 2 kilos per unit at 2.5 each kilo. Actual amount used is 2,000 kilos of material to make 3,000 units. The actual cost of the material is 6,000.
Considering this information, which of the following statements is true?
Select one:
a. The standard material price per kilo is 2.5.
b. The actual material price per kilo is 2.5.
c. The material price variance is favourable.
d. None of the answers is true.
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