Question: The standard direct material cost per unit for Willis Group was $124 (= $31 per gallon 4 gallons per unit). During the period, actual direct

The standard direct material cost per unit for Willis Group was $124 (= $31 per gallon 4 gallons per unit). During the period, actual direct materials costs amounted to $1,635,480, materials used totaled 55,440 gallons, and 13,200 units were produced.

Required:

Compute the direct materials price and efficiency variances for the period.

Note: 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.

Price Variance:

Efficiency Variance:

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