Pharell Company's standards for direct material for Product B included three pounds of direct material at $5per pound.

During June 29000 pounds of direct materials are purchased at a cost of $4.7 per pound and 28000 pounds of direct materials are used to 9400 finished units of Product B.

Instructions
(a) Compute the direct material price and quantity variances.
(b) Repeat (a), assuming the actual purchase price is $5.15 per pound, the actual
quantity purchased is 29,000 pounds and the actual quantity used is 28,800 pounds.

Variance Computations

(a) Direct Material

AQ( )*AP( ) AQ( )*SP( ) AQ( )*SP( ) SQ( )*SP( )

Amount of Variance

Name of Variance

Unf or Fav?

(b) Direct Materials

AQ( )*AP( ) AQ( )*SP( ) AQ( )*SP( ) SQ( )*SP( )

Amount of Variance

Name of Variance

Unf or Fav?