OP Corporation has a direct material price standard of $16.40 per pound of material purchased and a quantity standard of 2.3 pounds of material per unit produced. When OP Corporation actually purchased 16,000 pounds to make 6,400 units, they ended up using 2.5 pounds to make each unit while paying $16.15 per pound. Based on this information, OP Corporation would calculate...

Multiple Choice

• both direct material price and quantity variances as unfavorable.

• a favorable direct materials price variance and an unfavorable direct materials quantity variance.

• an unfavorable direct material price variance and a favorable direct materials quantity variance.

• both the direct materials price and quantity variances as favorable.