The following information is available for a company for January:

Direct materials used, 25,000 metres @ $5.50 per metre Standard costs for direct materials for January production, 26,000 metres @ $5.30 per metre

The direct material price variance is:

Select one:

a. $5,000 favourable.

b. $ 300 favourable.

c. $5,200 unfavourable.

d. $5,000 unfavourable.

e. $5,200 favourable.