Sanford Ltd. produces a product with the following standard cost:

Direct materials (23 kg)

$49.85

The fixed overhead rate is based on a standard monthly volume of 16210 units.

The actual results for the month of July 20x5 are as follows:

Direct materials purchased and used (324644 kg)

$620,000

Units produced and sold

15361 units

What is Sanfords direct materials usage variance for July 20x5 (note: a negative number represents an unfavourable variance and a positive number represents a favourable variance)?

Select one:

a. $62115

b. $808069

c. $-62115

d. $-104438