Reference no: EM132993136

Question - 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: (5 kilograms × $10 per kilogram) $50

Labor: (8 hours × $17 per hour) $136

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-90% complete to labor 1,200 units

Units completed during the month 7,740 units

Budgeted output 8,600 units

Purchases of materials, in kilograms (AQ) 37,000

Total actual labor costs incurred $ 529,000

Direct labor hours worked (AQ) 29,000 hours

Materials purchase-price variance $ 2,400 unfavorable

Increase in materials inventory in July 1,000 kilograms

Beginning inventory of materials 0 kg.

Required - What the sales volume variance, measured in terms of direct labor cost, for July (to the nearest dollar)?