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 $2\mathrm{.}5$ 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?

Question $4$Select one:

a$.$

The standard material price per kilo is $2\mathrm{.}5.$

b$.$

The actual material price per kilo is $2\mathrm{.}5.$

c$.$

The material price variance is favourable.

d$.$

None of the answers is true.