Prepare a Variance analysis on paper and then answer the questions on Questions 1-4, ABC Co. produces a product with the following standards and actual results. Standards: Each unit requires 10 pounds of direct materials The standard cost is $7 per pound. Actual results: 2,000 units were produced 22,500 pounds of materials was used. The total costs of materials =$160,000. What is the total variance? Prepare a Variance analysis on paper and then answer the questions on Questions 1-4. ABC Co. produces a product with the following standards and actual results. Standards: Each unit requires 10 pounds of direct materials The standard cost is $7 per pound. Actual results: 2,000 units were produced 22,500 pounds of materials was used. The total costs of materials =$160,000. True or false. The price variance is favorable, the quantity variance is favorable, and the total variance is favorable. True False