Refer to the exhibit.
Xell Ltd uses a standard costing system and therefore values all inventory at standard cost.
During period 3 the price paid for material ‘A’ was £6 per kg less than the standard price.
The following information for material ‘A’ relates to period 3:
What was the material price variance for period 3?
A . £6 Favourable
B . £60 Favourable
C . £1500 Favourable
D . £1800 Favourable
Answer: D