Exercise $2$:

Product A has a standard direct material cost as follows:

$15$ kilograms of material B at $$10$ per kilogram $=$$$150$ per unit of A During period $4$: $1\mathrm{.}000$ units of A were manufactured, using $15\mathrm{.}500$ kilograms, material B which cost $$131\mathrm{.}750.$

Calculate the following variances:

a$.$ The direct material total variance

b$.$ The direct material price variance

c$.$ The direct material usage variance

Draw Diagram Direct material variance