Lakewood Inc. uses a standard cost system. Materials standards are 6 components per widget at $8 per

Question:

Lakewood Inc. uses a standard cost system. Materials standards are 6 components per widget at $8 per component. During August, Lakewood Inc. purchased 65,100 components for $157,500, using the components to produce 8,900 widgets. Calculate the direct materials price variance. Calculate the direct materials quantity variance.