Direct materials variances

Bellingham Company produces a product that requires $2\mathrm{.}3$ standard pounds per unit. The standarrd price is $$3\mathrm{.}65$ per pound. $16,000$ units used $35,800$ pounds, which were purchased at $$3\mathrm{.}80$ per pound.

This information has been collected in the Microsoft Excel Online file. Open the spreadsheet, perform the required analysis, and input your answers in the questions below.

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What is the direct materials $($a$)$ price variance, $($b$)$ quantity variance, and $($c$)$ cost variance? Round your answers to the nearest dollar. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number.

a$.$ Direct materials price variance

b$.$ Direct materials quantity variance

c$.$ Direct materials cost variance

$$ Unfavorable $.$

Incorrect $$

Unravorable

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Unfavorable varlances 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.