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Sanford Ltd. produces a product with the following standard cost card: Direct materials (19 kg) $49.86 Direct labour (7 hours) 84.00 Variable overhead (7 hours)

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

Direct materials (19 kg)

$49.86

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 15976 units.

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

Direct materials purchased and used (381027 kg)

$609265

Direct labour (93,000 hours)

1,023,000

Variable overhead

320,000

Fixed overhead

580,000

Units produced and sold

15,500 units

What is Sanfords direct materials price variance for July 20x5? Note: a negative number represents an unfavourable variance and a positive number represents a favourable variance.

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