21-8

QS 21-8 (Algo) Direct materials price and quantity variances LO P3 A company reports the following for one of its products. Direct materiale standard () pounds $2 per pound) $ 6 per unit Actual direct materials used (10) 260,000 pounds Actual units produced 70,000 units Actual cost of direct materials used $ 455,000 AQ - Actual Quantity SQ - Standard Quantity AP Actual Price SP - Standard Price Compute the direct materials price and quantity variances and identify each as favorable or unfavorable. Actual Cost Standard Cost $ 0 $ 0