onas Materials Science (JMS) purchases its materials frorm everal countries. As part of its cost-control program, JMS uses standard cost system for all aspects of its operations, ncluding purchases of direct materials. The company stablishes standard costs for direct materials at the beginning f each fiscal year. Pat Butch, the purchasing manager, is happy with the result of the year just ended. He believes that the purchase-price ariance for direct materials for the year will be favorable and is very confident that his department has at least met the standard prices. The preliminary report from the controller's office confirms his jubilation. Following is a portion of the preliminary report: 45,600 kilograms $ Total quantity purchased Average price per kilogram Standard price per kilogram Budgeted quantity per quanter 57 67 5,700 kilograms