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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

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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 40,000 pounds of direct materials for $210,000, and manufactured 12,000 finished units. The standard direct materials cost allowed for the units manufactured is $120,000. The performance report shows that Precilla has an unfavorable direct materials usage variance of $5,000. 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 $10,000 unfavorable. $50,000 unfavorable $80,000 unfavorable $10,000 unfavorable. $50,000 unfavorable. O $80,000 unfavorable. O $86,000 unfavorable. O $90,000 unfavorable

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