Answer the following question:

The amount of the direct material price variance is $____________.

Indicate if the direct material price variance is favourable (enter the letter F) or unfavourable (enter the letters UF).

The amount of the direct material usage variance (also called efficiency variance) is $____________.

Indicate if the direct material usage variance is favourable (enter the letter F) or unfavourable (enter the letters UF).

Alexandra Inc. produces maple flavoured jelly. The company developed the following standard costs for a case of jelly: Cost per Litres Litre Direct materials 65.00 $1.15 The actual results for the year are: Total Cost $74.75 Units produced Direct materials purchased and used (Litres) Direct materials cost per Litre Required: 70,000 4,690,000 $1.10 Calculate the direct material price and usage (also called efficiency) variances and use your solution to answer the following questions