In reviewing activity for July, the controller of Mathis, Inc., collected the following data concerning direct materials:
Actual production . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 103,000 units
Direct materials purchased (actual) . . . . . . . . . . . . . . . . . . . $1,642,800
Standard cost of materials purchased . . . . . . . . . . . . . . . . . 1,554,000
Standard direct materials costs per unit produced . . . . . . . . 14
Standard price times actual amount of materials used . . . . 1,405,950
Required
Compute the direct materials cost variances. Prepare an analysis for management like the one in Exhibit 17.3.