Punta Cana Company set the following standards for direct materials for 2022:

16 pounds per unit at a standard cost of $7.00 per pound

At the end of 2022, Punta Cana reported the following actual results related to direct materials.

Purchased 12,000 pounds at $7.15 per pound. 10,000 pounds were used to produce 600 units.

Required: Calculate the direct material price variance and direct material quantity variance (show work and clearly label each answer). Note that because the amount purchased does not equal the amount used, you must use the 4-line approach shown in class.

Punta Cana Company set the following standards for direct materials for 2022: 16 pounds per unit at a standard cost of $7.00 per pound At the end of 2022, Punta Cana reported the following actual results related to direct materials. Purchased 12,000 pounds at $7.15 per pound. 10,000 pounds were used to produce 600 units. Required: Calculate the direct material price variance and direct material quantity variance (show work and clearly label each answer). Note that because the amount purchased does not equal the amount used, you must use the 4 -line approach shown in class