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: (3.70 kilograms $9.30 per kilogram) $34.41
Labor: (3.70 hours $16.70 per hour) $61.79
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 - 80.00% complete as to labor						900	units
	Units completed						6,660	units
	Budgeted output						7,500	units
	Purchases of materials in kilograms (AQ)						28,000
	Total actual labor costs incurred						$490,300
	Direct labor hours worked (AQ)						25,900	hours
	Materials purchase-price variance						$2,800	unfavorable
	Increase in materials inventory in July						1,400	kilograms
	Beginning inventory of materials						none
The materials price variance calculated when the materials are used: