Bellweather Ceramics produces large planters to be used in urban landscaping projects. Special earth clay is used to make the planters. The standard quantity of clay used for each planter is 31 pounds. Bellweather uses a standard cost of $2.15 per pound of the clay. Bellweather produced 2,500 planters in May. In that month, 80,000 pounds of clay were purchased and used at the total cost of $164,000.
Requirements
1. Calculate the direct materials price variance.
2. Calculate the direct materials quantity variance.