A company developed the following per-unit standards for its product: 2.4 pounds of direct materials at $2 per pound. Last month, 700 pounds of direct materials were purchased and used for $1,470. The company produced 290 units of product. How much is the direct materials price variance for last month?

a. $8 unfavorable

b. $78 unfavorable

c. $70 unfavorable

d. $61.60 unfavorable

39. The per-unit standards for direct materials are 1.5 gallons at $2.50 per gallon. Last month, 4,180 gallons of direct materials that actually cost $10,659 were used to produce 3,000 units of product. How much is the direct materials standard?

a. $4,500

b. $11,250

c. $3.75

d. Not enough information