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Machine Builders Inc. adopted a standard cost system several years ago that it uses in conjunction with its process cost system. The per-unit standard

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Machine Builders Inc. adopted a standard cost system several years ago that it uses in conjunction with its process cost system. The per-unit standard costs for direct materials and direct labor for its single product are as follows: Materials: (3 kilograms x $10 per kilogram) Labor: $ 30 (3 hours x $18 per hour) $ 54 All materials are issued at the beginning of processing. The operating data shown below were taken from the records for July: In-process beginning inventory none In-process ending inventory-90% complete as to labor 1,100 units Units completed during the month 7,300 units Budgeted output Purchases of materials, in kilograms (AQ) Total actual labor costs incurred Direct labor hours worked (AQ) Materials purchase-price variance Increase in materials inventory in July Beginning inventory of materials The direct materials usage varlance for July, to the nearest dollar, was: Multiple Choice $1,000 unfavorable. $2,700 favorable. $32,000 favorable. 7,300 units 23,000 $519,000 28,000 hours $ 2,700 unfavorable 1,000 kilograms 0 kg.

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