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Crane Industries uses a standard cost system in which direct material is carried at standard cost. Crane has established the following standards for one unit of product: standard quantity of $8$ pounds, standard price $$1\mathrm{.}80$ per pound. During January, Crane purchased $161,000$ pounds of direct material at a cost of $$306,000$ and used $143,500$ pounds in production of $18,900$ units.

Calculate the direct materials price variance and indicate whether the variance is favorable or unfavorable.

Direct materials price variance

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