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keAssignment/takeAssignmentMaindožinwoker -saved&take;ÁssignmentSessionlocator-assignment-takesinprogress eBook Show Me How a Calculator Direct Materials Variances that requires 16 standard pounds per unit. The standard price is $4.5 per pound. If 2,700 units used 42,300 pounds, which were purchased at $4.59 per pound, what is the direct materials (a) price variance, (b) quantity variance, and (e) cost variance? Enter a favorab le variance as a negative number using a minus sign and an unfavorable variance as a positive number a. Direct materials price variance b. Direct materials quantity variance c. Direct materials cost variance Unfavorable v Favorable v Favorable Feedback Check My Work Unfavorable variances can be thought of as increasing costs (a debit). Favorable variances can be thought of as decreasing costs (a credit) Cost variance is the difference between the actual and standard total cost Learning Objective 3. 538 PM d, 3/15/2018Explanation / Answer
a.
Direct materials price variance
= (Actual price - Standard price) x Actual quantity
= ($4.59 - $4.5) x 42,300
= $3,807 Unfavorable
b.
Direct materials quantity variance
= (Actual quantity - Standard quantity for actual production) x Standard price
= [42,300 - (2,700 x 16)] x $4.5
= $4,050 Favorable
c.
Direct materials cost variance
= (Actual quantity x Actual price) - (Standard quantity for actual production x Standard price)
= ($4.59 x 42,300) - [$4.5 x (2,700 x 16)]
= $243 Favorable
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