Tractor Corporation produces toy tractors. The company uses the following direct cost categories:

Category	Standard Inputs for 1 output	Std. Cost per input
Direct Materials	4.00	$12.50
Direct Labour	1.40	9.50
Direct Marketing	0.54	5.50

Actual performance for the company is shown below:

Actual output: 5,000 units

Direct Materials:

Materials costs	$299,000
Input purchased and used	23,000
Actual price per input	$13.00

Direct Manufacturing Labour:

Labour costs	$95,000
Labour-hours of input	9,500
Actual price per hour	$10.00

Direct Marketing Labour:

Labour costs	$40,000
Labour-hours of input	5,000
Actual price per hour	$8.00

What is the rate variance of the direct materials?

Question options:

	$11,000 favourable
	$11,500 favourable
	$11,500 unfavourable
	$10,000 favourable
	$10,000 unfavourable