Direct Materials Variances

Alvarado Company produces a product that requires 11 standard pounds per unit. The standard price is $8.00 per pound. If 2,700 units used 30,900 pounds, which were purchased at $7.6 per pound, what is the direct materials (a) price variance, (b) quantity variance, and (c) cost variance? Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number.

Line Item Description	Amount	Variance
a. Direct materials price variance	$fill in the blank 1	Favorable
b. Direct materials quantity variance	$fill in the blank 3	Unfavorable
c. Direct materials cost variance	$fill in the blank 5	Favorable

Direct Materials Variances Alvarado Company produces a product that requires 11 standard pounds per unit. The standard price is $8.00 per pound. If 2,700 units used 30,900 pounds, which were purchased at $7.6 per pound, what is the direct materials (a) price variance, (b) quantity variance, and (c) cost variance? Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number. Feedback Check My Work Unfavorable variances can be thought of as increasing costs (a debit). Favorable variances can be thought of as decreasing costs (a credit). Cost variance is the difference between the actual and standard total cost. Direct Materials Variances Alvarado Company produces a product that requires 11 standard pounds per unit. The standard price is $8.00 per pound. If 2,700 units used 30,900 pounds, which were purchased at $7.6 per pound, what is the direct materials (a) price variance, (b) quantity variance, and (c) cost variance? Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number. Feedback Check My Work Unfavorable variances can be thought of as increasing costs (a debit). Favorable variances can be thought of as decreasing costs (a credit). Cost variance is the difference between the actual and standard total cost