The Becton Enterprises (BE) produces a gasoline additive, Charger Power. 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 ensure 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 Charger Power is $328.50. The standard materials mix and related standard cost of each chemical used in a 500-liter batch are:

Chemical	Standard input quantity	Standard cost per liter	Total cost
Echol	380	$ 0.200	$ 76.00
Protex	280	0.425	119.00
Benz	430	0.150	64.50
CT-40	230	0.300	69.00
	1,320		$ 328.50

The quantities of chemicals purchased and used during the current production period are shown in the schedule below. A total of 320 batches of Charger Power were manufactured during the current production period. The controller of BE has determined its costs and chemical usage variations at the end of the production period.

Chemical	Quantity Purchased	Total Cost	Quantity Used
Echol	28,600	$ 7,795	30,200
Protex	16,600	8,670	16,480
Benz	43,600	8,270	41,400
CT-40	11,100	4,650	10,740
	99,900		98,820

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

Multiple Choice

• $6,010

• $6,390

• $6,740

• $7,120