Min Company
Min Company Has Developed the Following Standards for One

Min Company
Min Company has developed the following standards for one of its products. $$\begin{array} { l l } \text { Direct materials: } & 15 \mathrm {~kg} \times \$ 17.50 \text { per kilogram } \\\text { Direct labour: } & 4 \text { hours } \times \$ 24 \text { per hour } \\\text { Variable manufacturing overhead: } & 4 \text { hours } \times \$ 14 \text { per hour }\end{array}$$ The following activity occurred during the month of November: $\begin{array}{ll}\text { Materials purchased: } & 20,000 \mathrm{~kg} \text { costing } \$ 340,000 \\\text { Materials used: } & 7,200 \mathrm{~kg} \\\text { Units produced: } & 500 \text { units } \\\text { Direct labour: } & 2,300 \text { hours at } \$ 23.60 \text { per hour }\end{array}$ The company records materials price variances at the time of purchase.
-What is the direct materials price variance?

A) $10,000 U
B) $10,000 F
C) $50,000 U
D) $50,000 F