Atlantic Company has a manufacturing facility in Brooklyn that manufactures robotic equipment for the auto industry. For Year 1, Atlantic collected the following information from its main production line:

Actual quantity purchased ....................200 units

Actual quantity used ..........................110 units

Units standard quantity .......................100 units

Actual price paid ...............................$ 8 per unit

Standard price ..................................$ 10 per unit

Atlantic isolates price variances at the time of purchase. What is the materials price variance for Year 1?

1. $400 favorable.

2. $400 unfavorable.

3. $220 favorable.

4. $220 unfavorable.