Direct Materials Variances

Tip Top Corp. produces a product that requires 11standardgallons per unit. The standard price is $7.50 per gallon. If 4,500 units required 50,500 gallons, which were purchased at $7.35 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.

a.Direct materials price variance$Select

Favorable

Unfavorable

Item 2

b.Direct materials quantity variance$Select

Favorable

Unfavorable

Item 4

c.Direct materials cost variance$Select

Favorable

Unfavorable

Item 6