Problem 17-36 Variable Cost Variances: Materials Purchased and Used Are Not Equal (LO 17-4, 6) Grillen Company makes pipe using metal The company uses a standard costing system Variable overhead is allocated on the basis of direct material usage (pounds) Overhead is allocated to units based on expected production of 12 000 units. Griffen maintains a materials inventory, so the amount of material used is not necessarily the same as the amount of material purchased in any one month The standard cost sheet for a unit of pipe follows Drect matera Direct labor Variable overhead Fad overhead 6 pounds 55 2 hours 6 pounds @ $2 525 $ 30.00 50.00 1200 2000 $ 112.00 August financial conuts show that the average purchase price of mutat was $5.90 per pound. The purchase price variance 534 590 unfavorable. The variable overhead officiency variance was 8.000 unfavorable. Good output produced totaled 15,000 units Required: a. How many pounds of metal were purchased in August? (Do not round intermediate calculations.) Metall purchased pounds b. What was the direct material efficiency variance in August? (Indicate the effect of each variance by selecting "F" for favorable, or "U" for unfavorable. If there is no effect, do not select either option) Eficiency valce