1. Bellingham Company produces a product that requires 14 standard pounds per unit. The standard price is $10.5 per pound. If 2,500 units used 35,700 pounds, which were purchased at $10.08 per pound, what is the direct materials (a) price variance, (b) quantity variance, and (c) cost variance? Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number.

a. Direct materials price variance	$	Favorable
b. Direct materials quantity variance	$	Unfavorable
c. Direct materials cost variance	$	Favorable

2. Bellingham Company produces a product that requires 8 standard direct labor hours per unit at a standard hourly rate of $19.00 per hour. If 3,700 units used 30,800 hours at an hourly rate of $18.43 per hour, what is the direct labor (a) rate variance, (b) time variance, and (c) cost variance? Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number.

a. Direct labor rate variance	$	Favorable
b. Direct labor time variance	$	Unfavorable
c. Direct labor cost variance	$	Unfavorable