1 - Show a situation that would result in a FAVORABLE material price variance.

2 - Show a situation that would result in an UNFAVORABLE material price variance.

Direct Material Variances AQ SP Actual Cost AQ AP 77,133 15.00 $1,156,995 Standard Cost SQ SP 64,000 15.00 77,133 15.00 X $1,156,995 $960,000 $0 $196,995 Favorable/Unfavorable None $0 Direct material price variance Direct material quantity variance Total direct material variance $196,995 Unfavorable $196,995 Unfavorable