The Porter Company has a standard cost system. In July, the company purchased 22,500 kilograms of direct material at an actual cost of $52,000. 21,000 kilograms were used in producing 50 units of finished goods. The DM price standard is $2.50 per kilogram and the DM quantity standard is 435 kilograms. What was the materials price variance for July?

Multiple Choice

• $4,250 unfavourable.
• $3,250 unfavourable.
• $3,250 favourable.
• $4,250 favourable.