Direct Materials Variances Bellingham Company produces a product that requires eight standard pounds per unit. The standard price is $4.5 per pound. If 3,300 units used 25,300 pounds, which were purchased at $4.73 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. a. Direct materials price variance X Unfavorable b. Direct materials quantity variance X Favorable c. Direct materials cost variance X Unfavorable 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. Learning Objective 3