Matt Company uses a standard cost system. Information for raw materials for Product RBI for the month of October follows:
Standard price per pound of raw materials $1.69
Actual purchase price per pound of raw materials $1.51
Actual quantity of raw materials purchased 2,180 pounds
Actual quantity of raw materials used 2,080 pounds
Standard quantity allowed for actual production 1,980 pounds
What is the materials purchase price variance?
a) $402.40 favorable
b) $392.40 favorable
c) $392.40 unfavorable
d) $407.40 unfavorable