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Mendocino Corporation has the following standard costs for its sole product. Direct Materials (2 pounds at $4.50 per pound) = $9.00 per unit Direct Labor

Mendocino Corporation has the following standard costs for its sole product.

Direct Materials (2 pounds at $4.50 per pound)

= $9.00 per unit

Direct Labor (0.6 hours at $12.00 per hour)

= $7.20 per unit

During July, Mendocino produced 2,000 units, bought and used 4,200 pounds of direct material at $4.80 per pound, and used 1,100 hours of labor at a total cost of $14,025.

Based on this information, what is the direct materials quantity variance?

Group of answer choices

$900 unfavorable

$1,200 unfavorable

($1,200) favorable

($900) favorable

Dairy Products Inc. produces gourmet cheese for resale at local grocery stores. Jakes expected to use 3.0 pounds of direct materials to produce one unit (batch) of product at a cost of $8 per pound. Actual results are in for last year, which indicates 45,000 units of cheese were sold. The company purchased 160,000 pounds of materials at $7.50 per pound, and used 145,000 pounds in production.

What is Jake's materials price variance?

$72,500 unfavorable

$80,000 unfavorable

($80,000) favorable

($72,500) favorable

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