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22.)Direct materials: Standard quantity (SQ): 3 DM units per finished goods unit. Actual quantity purchased (AQP): 4,000 DM units Actual quantity used (AQU): 3,900 DM

22.)Direct materials:

Standard quantity (SQ): 3 DM units per finished goods unit. Actual quantity purchased (AQP): 4,000 DM units Actual quantity used (AQU): 3,900 DM units Standard price (SP): $12.00 Actual price (AP): $13.10

This firm budgeted 1,000 finished goods units and actually produced 1,200 finished goods units. What are the direct materials variances?

a.DM quantity variance: $10,800 unfavorable DM price variance: $4,400 unfavorable

b.DM quantity variance: $4,800 unfavorable DM price variance: $4,290 unfavorable

c.DM quantity variance: $12,000 unfavorable DM price variance: $4,290 unfavorable

d.DM quantity variance: $3,600 unfavorable DM price variance: $4,400 unfavorable

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