Use the Information Below to Answer the Following Question(s)

Multiple Choice

Use the information below to answer the following question(s) .
Tractor Corporation produces toy tractors. The company uses the following direct cost categories:

Actual performance for the company is shown below:
Actual output: 5,000 units
Direct Materials:

Direct Manufacturing Labour:

Direct Marketing Labour:

-What is the rate variance of the direct materials?

A) $10,000 favourable
B) $11,500 unfavourable
C) $11,500 favourable
D) $10,000 unfavourable
E) $11,000 favourable