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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

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: (7 kilograms $10 per kilogram) $ 70
Labor: (3 hours $22 per hour) $ 66

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 1,100 units
Units completed during the month 7,740 units
Budgeted output 8,600 units
Purchases of materials, in kilograms (AQ) 33,000
Total actual labor costs incurred $ 466,000
Direct labor hours worked (AQ) 22,000 hours
Materials purchase-price variance $ 2,900 unfavorable
Increase in materials inventory in July 1,300 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

$8,580 favorable.

$58,980 unfavorable.

$73,380 unfavorable.

$52,380 unfavorable.

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