Reference no: EM132559052

Question 1: MNO produces a single product. The standard production requirement for each unit requires 2 kilograms of a single material at a standard cost of $5 per kilogram. During the last year, MNO purchased 10,000 kilograms of materials at total cost of $58,000. Also last year, MNO manufactured 3,000 units of product using a total of 7,000 kg. What was the MNO's materials purchase price variance for the year?

Option a) Nill

Option b) $4000 favourable

Option c) $8000 unfavourable

Option d) $2800 unfavourable