Elia Ltd has set the following direct material standards per unit of product: 2.5 kg @ $3.00 per kg.

During April,actual direct material purchased and used amounted to 8000 kg at a total cost of $24,800. Actual production amounted to 3000 units.

Determine Elia's direct Material Price variance.

Question 1 options:

a)

$750(U)

b)

$800(U)

c)

$700(U)

d)

$1,500 (U)