A company manufactures a single product. An extract from a variance control report together with relevant standard cost data is shown below.

Standard selling price per unit????????????????????????????????????????????????????? $70

Standard direct material cost (5 kg x $2 per kg)?????????????????????????? $10 per unit

Budgeted total material cost of sales??????????????????????????????????????????? $2,300 per month

Budgeted profit margin????????????????????????????????????????????????????????????????? $6,900 per month

Actual results for February

Sales revenue??????????????????????????????????????????????????????????????????????????????? $15,200

Total direct material cost??????????????????????????????????????????????????????????????? $2,400

Direct material price variance???????????????????????????????????????????????????????? $800 adverse

Direct material usage variance?????????????????????????????????????????????????????? $400 favourable

There was no change in inventory levels during the month.