Kilo Company uses a standard costing system that allows 2.0 pounds of direct materials for one finished unit of product. During July, the company purchased 45,000 pounds of direct materials for $351,000, and manufactured 12,500 finished units. The standard direct materials cost allowed for the units manufactured is $187,500. The performance report shows that Kilo has an unfavorable direct materials usage variance of $7,500. Also, the company records any price variance for materials at time of purchase.

The direct materials purchase-price variance in July was: