Daisy Ceramics produces large planters to be used in urban landscaping projects. A special earth clay is used to make the planters. The standard quantity of clay used for each planter is 24 pounds. The company uses a standard cost of $2.00 per pound of clay. Daisy produced 3,250 planters in May. In that month, 81,250 pounds of clay were purchased and used at the total cost of $156,000 Requirements 1. Calculate total variance between actual and standard amount. Is it favorable or unfavorable? 2. Calculate the direct material price variance. Is it favorable or unfavorable? 3. Calculate the direct material quantity variance. Is it favorable or unfavorable? Total variance Total variance Standard amount - Actual amount = Favorable or unfavorable? Direct materials price variance (Actual Price - Standard Price) = DM price variance favorable or unfavorable? Actual quantity purchased Direct materials quantity variance (Actual quantity used - Standard DM quantity Quantity allowed) = variance Standard price * Favorable or unfavorable