Calculating the Direct Materials Price Variance and the Direct Materials Usage Variance Guillermo's Oil and Lube Company is a service company that offers oil changes and lubrication for automobiles and light trucks. On average, Guillern has found that a typical oil change takes 29 minutes and 6.6 quarts of oil are used. In June, Guillermo's Oil and Lube had 980 oil changes. Guillermo's Oil and Lube Company provided the following information for the production of oil changes during the month of June: Actual number of oil changes performed: 980 Actual number of quarts of oil used: 6,920 quarts Actual price paid per quart of oil: $5.20 Standard price per quart of oil: $5.15 Required: 1. Calculate the direct materials price variance (MPV) and the direct materials usage variance (MUV) for June using the formula approach. If required, round your answers to the nearest cent. MPV 9 MUV 9 2. Calculate the total direct materials variance for oil for June. If required, round your answer to the nearest cent. 3. What if the actual number of quarts of oil purchased in June had been 6,860 quarts, and the materials price variance was calculated at the time purchase? If required, round your answers to the nearest cent