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:	(4.0 kilograms $10.00 per kilogram)	$	40.00
Labor:	(4.0 hours $18.00 per hour)	$	72.00

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 inventory90% complete as to labor		1,000	units
Units completed during the month		7,200	units
Budgeted output		8,000	units
Purchases of materials, in kilograms (AQ)		30,000
Total actual labor costs incurred	$	525,000
Direct labor hours worked (AQ)		28,000	hours
Materials purchase-price variance	$	3,000	unfavorable
Increase in materials inventory in July		1,500	kilograms
Beginning inventory of materials		0	kg.

The sales volume variance, measured in terms of direct labor cost, for July (to the nearest dollar) was:

Multiple Choice

• $57,600 unfavorable.

• $51,000 unfavorable.

• $6,600 favorable.

• $7,200 favorable.

• $72,000 unfavorable.