Direct Materials Variances Bellingham Company produces a product that requires 10 standard pounds per unit. The standard price is $6 per pound. If 4,200 units used 40,700 pounds, which were purchased at $6.12 per pound, what is the direct materials (a) price variance, (b) quantity variance, and (c) cos variance? Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number. Feedback Vheck 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