Kennedy Corporation makes a product with the following standard costs:

	Standard Quantity or Hours	Standard Price or Rate	Standard Cost per Unit
Direct materials	8.2 pounds	$7.00 per pound	$57.40
Direct labor	0.4 hours	$20.00 per hour	$8.00
Variable overhead	0.4 hours	$2.00 per hour	$0.80

The company budgeted for production of 2,400 units in June, but actual production was 2,500 units. The company used 19,850 pounds of direct material and 980 direct labor-hours to produce this output. The company purchased 20,000 pounds of the direct material at $7.39 per pound. The actual direct labor rate was $19.20 per hour and the actual variable overhead rate was $1.80 per hour.

The company applies variable overhead on the basis of direct labor-hours. The direct materials purchases variance is computed when the materials are purchased.

The materials price variance for June is:

Select one:

a. $7,800.00

b. $7,741.50

c. $21,114.29

d. $20,955.93