Gates Corporation reported the following information concerning its direct materials:
Direct materials purchased (actual) . . . . . . . . . . . . . . . . . . . . $673,000
Standard cost of materials purchased. . . . . . . . . . . . . . . . . . . $688,000
Standard price times actual amount of materials used. . . . . . $444,000
Actual production. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22,000 units
Standard direct materials costs per unit produced. . . . . . . . . $20
Required
Compute the direct materials cost variances. Prepare an analysis for management like the one in Exhibit 17.3.