#9: Standard Costing & Variances Jakes Cheese Company produces gourmet cheese for resale at local grocery stores. Jakes expected to use 3.0 pounds of direct materials to produce one unit (batch) of product at a cost of $8 per pound. Actual results are in for last year, which indicates 45,000 batches of cheese were sold. The company purchased 160,000 pounds of materials at $7.50 per pound, and used 145,000 pounds in production. Required: (1) Calculate the materials price variance. (2) Calculate the materials quantity variance. (3) Suggest several possible reasons for the materials price and quantity variances calculated in requirements (1) and (2)