KCL Manufacturing expects that there will be a standard 3 kilos of raw material used for every unit of finished goods produced. KCL began the month of May with 5,000 kilos of raw material, purchased 15,000 kilos for £19,500 and ended the month with 4,000 kilos on hand. The company produced 5,000 units of finished goods. The company estimates standard costs at £1.50 per kilo.

What is the materials price variance for the month of May based on the quantity purchased? Show all calculations.



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