FAR Company produces a line of all-vinyl mats. Each doormat calls for 0.4 meter of vinyl materiat that costs 53.10 per meter. in August 2025 the division manufactured and sold 60,000 doormats. During the month.25.200 meters of viryl material were used at a total coct of $73.080. Calculate the direct materials price variance, the direct materials quantify variariee and the total direct materals varince and state whether they are favorable or not. Provide one reasonable cause for each of the three variances. ANSWER EY CHOOSING THE MOST APPROPRIATE ANSWER FROM BELOW: Selcot one; a.0M price variance:\$5,040 favorable (causevendor gove a discount), DM quantity variance $3,720 unfavorable (causer. faulty equipment). Total DM variance: $1,320 favorable (cause: positive price variance made up for the negativo variance due to quantity) b. DM price variance $5,040 unfavorable (cause:vendor gave a discount), DM quantity variance $3.720 unfavorable (cause: faulty equiprnent). Total DM variance $8,760 unfavorable (cause; cost overruns across both aspecis). c. DM price variance: $3,720 unfavorable (cautevendor gave a discount), DM quantity variarice: $5.040 unfavorable (cause: fauity equpenent). Total DM variance: $8,760 unfavorable (cause cost overtuns across both aspocts). DM price variance:\$3,720 favorable (cause:vendor gave a discount), DM quantity variance $5.040 unfavorable (cause: faulty equipment). Total DM variance $1,320 unfavorable (cause; negative quantity variance outweighed the positive variance due to price). e.DM price variance: $5,040 favorable (cause:vendor gave a discount), DM quantity variance $3,720 foriotable (cause excellent workmanship). Total DM variance: $8,760 favorable (causei cont savings across both atpects). intervention), Total DM variance. 51,320 favorable (cause, positive price variance made up for the nogatrve varinnce due to quantity) 9. DM price variance-\$5,040 unfavorable (causo:factory rent increased), DM quantity variance:\$3,720 unfavorable (cause faulty equiprient), Total DM variance:\$8,760 unfavorable (cause: cost overruns across both aspects). h.DM price variance: $5,040 favorable (cause: factory rent increaped), DM quantity variance 83,720 anfavorable (cause, faulty eq Total DM variance:\$1,320 favorable (cause: positive price varince made-up for the negative variance due to quantity). 1.DM price variance:\$5,040 unfavorable (causefactory rent increased), DM quantity variance. $3,720 unfavorable (caube: Iow supervision). Total DM variance:S8,760 unfavorable (cause: cost overruns actoss both aspects)
