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Grub Chemical Corporation has developed cost standards for the production of its new cologne, ChocO....

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Accounting

Grub Chemical Corporation has developed cost standards for the production of its new cologne, ChocO. The variable cost standards below relate to each 10 gallon batch of ChocO:

Standard Cost Per Batch
Milk cologne (2 pounds $0.85 per pound) $ 1.70
Direct labor (1.25 hours $12.00 per hour) $ 15.00
Variable overhead (1.25 hours $44.00 per hour) $ 55.00

Variable manufacturing overhead at Grub is applied based on direct labor-hours. The actual results for last month were as follows:

Number of batches produced 3,800
Direct labor-hours incurred 4,510
Pounds of cologne purchased 9,000
Pounds of cologne used in production 7,880
Cost of cologne purchased $ 7,200
Direct labor cost $ 53,218
Variable manufacturing overhead cost $ 205,700

What is ChocO's materials (milk cologne) price variance?

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