and Follow Directions posted in the "Exam-Instructions Announcement." Question 15 Kartman Corporation makes a product with the following standard costs: Standard Quantity or Hours Standard Price or Rate Standard Cost Per Unit 6.5pounds Direct materials $45.50 $14.40 Direct labor 0.6hours Variable overhead 0.6hours $2.40 In June the company's budgeted production was 3,400 units but the actual production was 3,500 units. The company used 22,150 pounds of the direct material and 2,290 direct labor-hours to produce this output. During the month, the company purchased 25,400 pounds of the direct material at a cost of $170,180. The actual direct labor cost was $57,021 and the actual variable overhead cost was $8,931. O $6,825 Unfavorable The company applies variable overhead on the basis of direct labor-hours. The direct materials purchases variance is computed when the materials are purchased. The materials price variance for June is: O $7,620 Favorable $7.00per pound $24.00per hour $4.00per hour O $7,620 Unfavor