Chapter 7 Know and understand how to calculate the direct materials price variance (Learn the formula and know how to apply it pgs. 283-284) Know and understand how to calculate the direct materials quantity variance (Learn the formula and know how to apply it pgs. 283-284) Know and understand if the actual quantity of direct materials used in producing a commodity differs from the standard quantity, what type of variance is it Know and understand if the price paid per unit differs from the standard price per unit for direct materials, what type of variance is it Know and understand if the wage rate paid per hour differs from the standard wage rate per hour for direct labor, what type of variance is it Know and understand if the actual direct labor hours spent producing a commodity differs from the standard hours, what type of variance is it