Using the following standard unit costs and the actual cost and usage data that follow, compute the direct materials price and direct materials quantity variances.

Direct materials quantity standard	1 pound per unit
Direct materials price standard	$10.00 per pound
Direct labor time standard	0.5 hour per unit
Direct labor rate standard	$12.00 per hour
Variable overhead rate standard	$6.00 per machine hour
Fixed overhead rate standard	$11.00 per machine hour
Machine hour standard	4 hours per unit

Direct materials purchased and used (pounds)	21,800
Price paid for direct materials	$10.10 per pound
Number of good units produced	21,000 units

Direct materials price variance	______$	Select one Favorable Unfavorable No effect
Direct materials quantity variance	______ $	Select one Favorable Unfavorable No effect Item 4

Answer rating: 100% (QA)

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