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: (5 kilograms * $10 per kilogram) Labor: (3 hours * $19 per hour) $ 50 $ 57 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-908 complete as to labor 1,200 units Units completed during the month 7,400 units Budgeted output 7,800 units Purchases of materials, in kilograms (AQ) 32,000 Total actual labor costs incurred $534,000 Direct labor hours worked (AQ) 37,000 hours Materials purchase-price variance $ 3,500 unfavorable Increase in materials inventory in July 1,500 kilograms Beginning inventory of materials 0 kg. The direct materials usage variance for July, to the nearest dollar, was