Ivanhoe Company budgeted the following cost standards for the current year:

Direct materials (2 kg of plastic at $5.00 per kilogram)		$10.00
Direct labour (2 hours at $12 per hour)		24.00
Variable manufacturing overhead		10.50
Fixed manufacturing overhead		7.05
Total standard cost per unit		$51.55

Actual costs for producing 2,660 units were as follows:

Direct materials used		5,810	kg
Direct materials purchased (6,610 kg)		$32,389
Direct labour (6,950 hours)		$65,330
Variable manufacturing costs		$32,900
Fixed manufacturing costs		$17,600

(a)

Calculate the materials price variance for materials purchased. (Round per unit calculations to 2 decimal places, e.g. 1.25 and final answers to 0 decimal places, e.g. 125.)

Materials price variance

$enter the materials price variance in dollars rounded to 0 decimal places

select an option Neither favourable nor unfavourableUnfavourableFavourable