1. The Eagle Company developed the following standards for the manufacture of its product:

• Each unit should have 3 pounds of direct materials purchased at $8 per pound.
• Each unit should be produced in 2 hours at a direct labor cost of $20 per hour.

Actual production was 4,000 units using 11,800 pounds of direct materials at a total cost of $96,300 and required 9,400 direct labor hours at a total cost of $182,600. What was the direct materials price variance? Use a positive number to indicate a favorable variance or a negative number to indicate an unfavorable variance.

2. The Antle Company manufactures metal wagons. In a recent budget performance report, there was an unfavorable quantity variance related to metal. Which of the following is the most likely explanation?

-Labor union contract disputes led to increased wages for all factory workers.

-The factory manager started purchasing metal from a lower cost supplier.

-The selling price of the wagons was reduced.

-A precision laser cutter for sheet metal was installed at the factory.

-None of the above