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.

Based on your calculations above, what is the Direct Materials Variance? Hint, the Direct Materials Price Variance netted with the Direct Materials Efficiency Variance gives you the Direct Materials Variance. 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.