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

	Direct materials (19 kg)	$51.54
	Direct labour (7 hours)	84.00
	Variable overhead (7 hours)	21.00
	Fixed overhead (7 hours)	35.00

The fixed overhead rate is based on a standard monthly volume of 16097 units.

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

	Direct materials purchased and used (329381 kg)	$620,000
	Direct labour (93000 hours)	1,023,000
	Variable overhead	320,000
	Fixed overhead	580,000
	Units produced and sold	15173 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. $111473

b. $-63850

c. $-111473

d. $63850