The following details were extracted from the standard cost card of a component:

Raw materials: 2 Kgs @ $4 per Kg

Direct labour: 5 hrs @ $5.50 per hour

During the period, actual results were as follows:

Production- 1,900 components.

Direct material purchase and usage- 4,000 Kgs at a cost of $18,000.

Wage Paid: (10,100 hrs) $61,000

What is the Material Price Variance?

Select one:

A.1,000 (Favourable)

B. 2,000 (Adverse)

C. 0 (Neither Favourable or Adverse)

D. 4,000 (Adverse)