Exercise 15-13 Direct material variances-solving for unknowns LO 4,5 tures end tables, armchairs, and other wood furniture products from high-quality materials. The company uses a standard costing system and isolates variances as soon as possible. The purchasing manager is responsible for controlling direct material price variances, and production managers are responsible for controlling usage variances. During November, the following results were reported for the production of American Oak armchairs: Units produced Direct materials purchased Direct materials issued into production Standard cost per unit (22 board feet * $8.2) Purchase price variance 1,640 armchairs 18,700 board feet 17,390 board feet $180.4 per unit produced $2,650 unfavorable Required: a. Calculate the actual price paid per board foot purchased. (Do not round intermediate calculations. Round your answer to 2 decimal places.) Actual price $ 8.34 per board foot b. Calculate the standard quantity of materials allowed in board feet) for the number of units produced. Standard quantity of materials allowed 19,680 c. Calculate the direct materials usage variance. (Indicate the effect of each variance by selecting "F" for favorable. "U" for unfavorable, and "None" for no effect i.e., zero variance).) Direct material usage variance $ 18,778 F d. The purchasing manager may have purchased higher-than-standard quality raw material inputs is the most likely explanation for the price and usage variances. True False