1. In actually producing 700 units of product last period, Azure Company used 5,000 pounds of Material at $6.85/pound. The company has established the standard (or budget) of using 7.2 pounds of Material K per unit of product, at a price of $7.50 per pound. Azure had budgeted for 700 units of product.

Calculate the direct materials price variance associated with producing the 700 units. Please enter a positive number only. You will not be able to indicate in your answer whether the variance is favorable, but you should think about whether or not the variance is favorable.