#18

Using the following product information, calculate the direct materials price variance and the direct materials quantity variance. Indicate whether each variance is favorable or unfavorable. Actual direct materials used (AQ) 19, 565 pounds Actual units produced 4, 670 units Actual cost of direct materials used $ 528, 255 Direct materials standard (4 pounds @ $25 per pound) $ 100 per unit AQ = Actual Quantity SQ = Standard Quantity AP = Actual Price SP = Standard Price Note: Indicate the effect of the variance by selecting favorable, unfavorable, or no variance. Actual Cost Standard Cost X X X O O O O O