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: 65 Materials: (5 kilograms * $13 per kilogram) Labor: (4 hours * $17 per hour) $ $ 68 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 In-process ending inventory90% complete as to labor Units completed during the month 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 none 1,100 units 6,700 units 7,500 units 38,000 $517,000 37,000 hours $ 3,000 unfavorable 1,400 kilograms 0 kg. The actual direct materials purchase price (AP) per kilogram in July (to two decimal places) was: $13.08. $12.98. $14.78. $11.78. $12.88