Direct Materials Variances

Using the following standard unit costs and the actual cost and usage data that follow, compute the direct materials price and direct materials quantity variances.

Direct materials quantity standard	1 pound per unit
Direct materials price standard	$10.00 per pound
Direct labor time standard	0.5 hour per unit
Direct labor rate standard	$12.00 per hour
Variable overhead rate standard	$6.00 per machine hour
Fixed overhead rate standard	$11.00 per machine hour
Machine hour standard	4 hours per unit

Direct materials purchased and used (pounds)	21,800
Price paid for direct materials	$10.10 per pound
Number of good units produced	21,000 units

Direct materials price variance	______$	Select one Favorable Unfavorable No effect
Direct materials quantity variance	______ $	Select one Favorable Unfavorable No effect Item 4