(KMG) produces a gasoline additive, Gas Gain. This product increases engine efficiency and improves gasoline mileage by creating a more complete burn in the combustion process. Careful controls are required during the production process to insure that the proper mix of input chemicals is achieved and that evaporation is controlled. Loss of output and efficiency may result if the controls are not effective.

The standard cost of producing a 500-liter batch of Gas Gain is $467.30. The standard materials mix and related standard cost of each chemical used in a 500-liter batch are:

Chemical	Std input quantity	Std cost per liter			Total cost
Echol	240	$	0.600		$	144.00
Protex	140		0.900			126.00
Benz	290		0.550			159.50
CT?40	54		0.700			37.80
	724				$	467.30

The quantities of chemicals purchased and used during the current production period are shown in the schedule below. A total of 180 batches of Gas Gain were manufactured during the current production period. The controller of KMG has determined its costs and chemical usage variations at the end of the production period.

Chemical	Quantity purchased	Total cost			Quantity used
Echol	39,200	$	24,080		41,710
Protex	24,200		22,980		23,980
Benz	56,200		29,410		53,120
CT?40	9,920		8,244		9,450
	129,520				128,260

If KMG recognizes all variances at the earliest possible moment, what is the total material price variance?

	$360.
	$3,060.
	$260.
	$1,560.