GrandScapes is a manufacturer of large flower pots for urban settings. The company has these standards: (Click the icon to view the actual results.) (Click the icon to view the standards.) Read the requirements. Requirement 1. Compute the direct material price variance and the direct material quantity variance. (Enter the variances as positive numbers. Enter currency amounts in the formula to the nearest cent and then round the final variance amount to the nearest whole dollar. Label the variance as favorable (F) or unfavorable (U) Abbreviations used. DM = Direct materials) First determine the formula for the price variance, then compute the price variance for direct materials. Actual quantity purchased x ( Actual price 18,660 x(S 6.20 Standard price 6.00 ) = DM price variance U ) = $ 3,732 Determine the formula for the quantity variance, then compute the quantity variance for direct material Standard price 6.00 ( Actual quantity used 18,260 Standard quantity allowed) = DM quantity variance U