Gala Enterprises reports the following information regarding the production on one of its products for the month.

Direct materials standard : (3 lbs. @ $4/lb.)$12 per finished unit

Actual direct materials used 250,000 lbs.

Actual finished units produced 90,000 units

Actual cost of direct materials used$980,000

Requirement 1:

Compute the direct materials cost variance and identify as either F for favorable or U for unfavorable.

Cost variance =, F/U

Requirement 2:

Compute the direct materials price variance and identify as either F for favorable or U for unfavorable.

Price variance =, F/U

Requirement 3:

Compute the direct materials quantity variance and identify as either F for favorable or U for unfavorable.

Quantity variance =, F/U