Grace Company manufactures candles. The standard direct materials quantity required to produce one large candle is one pound at a cost of $5 per pound. During November, 7,200 large candles were produced using 7,500 pounds of direct materials that cost $45,000.

Using the format below, make an analysis of the direct materials variances.

AC * AQ SC * AQ SC * SQ Cost Efficiency Variance Variance Total Direct Materials Variance