For the following problems, use the formula given:

Direct Materials Variances

Actual cost = Actual quantity* Standard cost =

Actual quantity * Standard price Standard quantity *

Actual price Standard price

Materials price variance Materials quantity variance

Total direct materials cost variance

2. The following data relate to direct materials cost for November:

Actual costs 4,600 lbs. @ $5.50

Standard costs 4,500 lbs. @ $6.00

What is the direct materials price variance?

$2,250 favorable

$2,250 unfavorable

$2,300 favorable

$1,700 unfavorable

The standard and actual costs for direct materials, direct labor and factory overhead for the manufacture of 2,500 units of product are as follows: (Note; this question refers to the chart above)

Standard costs

Direct materials 2,600 kilograms @ $8.75

Direct labor 7,400 hours @ $11.40

Actual costs

Direct materials 2,500 kilograms @ $8.00

Direct labor 7,500 hours @ $12.00

3. Using the information given above, the direct materials quantity variance is:

$875 unfavorable

$950 favorable

$875 favorable

$950 unfavorable

4. Using the information given above, the direct materials cost variance is:

$2,500 unfavorable

$2,500 favorable

$2,750 unfavorable

$2,750 favorable