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: (3.40 kilograms × $8.60 per kilogram) $29.24

Labor: (3.50 hours × $15.30 per hour) $53.55

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 - 80.00% complete as to labor…………………….800 units

Units completed…………………………………………………………………………………..6,110 units

Budgeted output………………………………………………………………………………….7,000 units

Purchases of materials in kilograms (AQ)…………………………………………..25,000

Total actual labor costs incurred …………………………………………………..$443,500

Direct labor hours worked (AQ)………………………………………………………..23,800 hours

Materials purchase-price variance…………………………………………………..$2,600 unfavorable

Increase in materials inventory in July……………………………………………….1,280 kilograms

Beginning inventory of materials………………………………………………………..none

The actual total cost of direct materials used in production during July was:

$364,140

$443,500

$202,048

$206,459

$203,992

Answer rating: 100% (QA)

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