Do It! Review 23-2

The standard cost of product 777 includes2.5units of direct materials at $5.6per unit. During August, the company bought28,200units of materials at $5.75and used those materials to produce11,500units.

Compute the total, price, and quantity variances for materials.

Total materials variance

$_________

Unfavorable

Favorable

Neither favorable nor unfavorable

Materials price variance

$______

Unfavorable

Favorable

Neither favorable nor unfavorable

Materials quantity variance

$________

Favorable

Unfavorable

Neither favorable nor unfavorable