A manufactured product has the following information for June.

	Standard	Actual
Direct materials	(5 lbs. @ $8 per lb.)		42,400	lbs. @ $8.10 per lb.
Direct labor	(2 hrs. @ $17 per hr.)		16,600	hrs. @ $17.50 per hr.
Overhead	(2 hrs. @ $12 per hr.)	$	207,400
Units manufactured			8,400

Exercise 23-9 Direct materials variances LO P2

AQ = Actual Quantity SQ = Standard Quantity AP = Actual Price SP = Standard Price

Compute the direct materials price variance and the direct materials quantity variance. Indicate whether each variance is favorable or unfavorable.

Actual Cost Standard Cost