Grace Company is a manufacturer of candles. The standard direct materials quantity required to produce one large candle is 1 pound at a cost of $5 per pound. During November, 2015, 7,200 large candles were produced using 7,500 pounds of direct materials which cost $45,000.

Using the format below, prepare an analysis of the direct materials variances.

AC X AQ Cost Variance SC AQ Efficiency Variance Total Direct Materials Variance SC SQ