Exercise 21-9 (Algo) Direct materials variances LO P3

A manufactured product has the following information for June.

	Standard Quantity and Cost	Actual Results
Direct materials	6 pounds @ $8 per pound	52,700	pounds @ $8.20 per pound
Direct labor	2 DLH @ $15 per DLH	17,200	hours @ $15.60 per hour
Overhead	2 DLH @ $11 per DLH	$ 197,900
Units manufactured		8,700	units

Compute the (1) direct materials price variance and (2) direct materials quantity variance. (Indicate the effect of each variance by selecting favorable, unfavorable, or no variance. Round "Cost per unit" answers to 2 decimal places.)

AQ = Actual Quantity

SQ = Standard Quantity

AP = Actual Price

SP = Standard Price

Exercise 21-9 (Algo) Direct materials variances LO P3 Compute the (1) direct materials price variance and (2) direct materials quantity variance. (Indicate the effect of each variance by selecting favorable, unfavorable, or no variance. Round "Cost per unit" answers to 2 decimal places.) AQ = Actual Quantity SQ = Standard Quantity AP = Actual Price SP = Standard Price Actual Cost Standard Cost