A company reports the following for one of its products.

Direct materials standard $(4$ pounds @ $$2$ per pound$)$ $ $8$ per unit

Actual direct materials used $300,000$ pounds

Actual units produced $60,000$ units

Actual cost of direct materials used $ $540,000$

AQ $=$ Actual Quantity

SQ $=$ Standard Quantity

AP $=$ Actual Price

SP $=$ Standard Price

Compute the direct materials price and quantity variances and identify each as favorable or unfavorable.

Answer rating: 100% (QA)

Direct Materials Variances We can calculate the direct materials price variance DMPV and direct materials quantity variance DMQV to assess the efficie... View the full answer