Parallel Enterprises has collected the following data on one of its products. During the period the company produced 25,000 units. The direct materials price variance is: Direct materials standard (7 kg. @ $2.50/kg.) $17.50 per finished unit Actual cost of materials purchased $423,500 Actual direct materials purchased and used 160,000 kg.

$23,500 favorable.

$37,500 unfavorable.

$14,000 unfavorable.

$37,500 favorable.

$23,500 unfavorable.