Precilla Company uses a standard costing system that allows 2.0 pounds of direct materials for one finished unit of product. During July, the company purchased 59,000 pounds of direct materials for $454,300, and manufactured 13,900 finished units. The standard direct materials cost allowed for the units manufactured is $208,500. The performance report shows that Pricilla has an unfavorable direct materials usage variance of $7,250. Also, the company records any price variance for materials at time of purchase.

The direct materials purchase-price variance in July (to the nearest dollar) was:

Multiple Choice

• $11,800 unfavorable.

• $70,800 unfavorable.

• $118,000 unfavorable.

• $124,950 unfavorable.

• $129,800 unfavorable.