Parallel Enterprises has collected the following data on one of its products. During the period the company produced 25,000 units. The direct materials price variance is: Direct materials standard (7 pounds @ $2/pound) $ 14 per finished unitActual cost of materials purchased $ 322,500  Actual direct materials purchased and used 150,000 poundsMultiple Choice$27,500 unfavorable.$22,500 favorable.$50,000 favorable.$22,500 unfavorable.$50,000 unfavorable.

To answer this question, we first need to calculate the standard cost of materials and the actual cost of materials.

1. Calculate the standard cost of materials: The standard cost of materials is the amount that the materials should have cost, according to the company's standards. This is calculated by multiplying the standard cost per unit by the number of units produced. In this case, the standard cost per unit is $14 (7 pounds @$2/pound), and the company produced 25,000 units. So, the standard cost of materials is $14 * 25,000 =$350,000.

2. Calculate the actual cost of materials: The actual cost of materials is the amount that the materials actually cost. In this case, the actual cost of materials is given as $322,500.

3. Calculate the direct materials price variance: The direct materials price variance is the difference between the standard cost of materials and the actual cost of materials. In this case, the direct materials price variance is $350,000 -$322,500 = $27,500.

So, the direct materials price variance is $27,500 favorable. However, this option is not given in the multiple choices.

Let's try another approach:

1. Calculate the standard price per pound: The standard price per pound is given as $2.

2. Calculate the actual price per pound: The actual price per pound is calculated by dividing the actual cost of materials by the actual quantity of materials used. In this case, the actual cost of materials is $322,500 and the actual quantity of materials used is 150,000 pounds. So, the actual price per pound is$322,500 / 150,000 = $2.15.

3. Calculate the direct materials price variance: The direct materials price variance is the difference between the actual cost of materials and the standard cost of materials, multiplied by the actual quantity of materials used. In this case, the direct materials price variance is ($2.15 -$2) * 150,000 = $22,500.

So, the direct materials price variance is $22,500 unfavorable, which is one of the given options.