Direct Materials Variances Lo-bed Company produces a product that requires two standard gallons per unit. The standard price is $20.00 per gallon. If 4,000 units required 8,200 gallons, which were purchased at $19.75 per gallon, 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. 2.050xFavorable a. Direct materials price variance $2,050 X b. Direct materials quantity variance 4,000 Unfavorable c. Direct materials cost variance 1,950 Unfavorable