Variable Cost Variances: Materials Purchased and Materials Used Are Not Equal Golden Company reported the following information concerning its direct materials:

Direct materials purchased (actual) . . . . . . . . . . . . . . . . . . . $174,474

Standard cost of materials purchased . . . . . . . . . . . . . . . . . $172,530

Standard price times actual amount of materials used . . . . $115,020

Actual production . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14,000 units

Standard direct materials costs per unit produced . . . . . . . . . . . $7.8

Required

Compute the direct materials cost variances. Prepare an analysis for management like the one in Exhibit 17.3.