If the DM quantity variance is favorable and large enough to be significant, a reasonable first step for management is to: update the standards ignore it investigate the cause of the variance reprimand the production manager A favorable DM price variance occurs when the: actual price paid for materials purchased is greater than the standard price allowed actual price paid for materials used is less than the standard price allowed actual price paid for materials used is greater than the standard price allowed actual price paid for materials purchased is less than the standard price allowed