QS 21-8 (Algo) Direct materials price and quantity variances LO P3 A company reports the following for one of its products. Direct materials standard (3 pounds @ $3 per pound) Actual direct materials used (AQ) Actual units produced Actual cost of direct materials used = AQ Actual Quantity SQ = Standard Quantity AP = Actual Price SP=Standard Price $9 per unit 270,000 pounds 71,000 units $ 742,500 Compute the direct materials price and quantity variances and identify each as favorable or unfavorable. Actual Cost 0 0 $ 0 0 0 Standard Cost QS 21-8 (Algo) Direct materials price and quantity variances LO P3 A company reports the following for one of its products. Direct materials standard (3 pounds @ $3 per pound) Actual direct materials used (AQ) Actual units produced Actual cost of direct materials used AQ Actual Quantity Standard Quantity SQ AP Actual Price = SP Standard Price $ 9 per unit 270,000 pounds 71,000 units $ 742,500 Compute the direct materials price and quantity variances and identify each as favorable or unfavorable. AQ SQ Actual Cost 0 $ 0 $ 0 0 $ 0 Standard Cost QS 21-8 (Algo) Direct materials price and quantity variances LO P3 A company reports the following for one of its products. Direct materials standard (3 pounds @ $3 per pound) Actual direct materials used (AQ) Actual units produced Actual cost of direct materials used AQ Actual Quantity Standard Quantity SQ AP Actual Price = SP Standard Price $ 9 per unit 270,000 pounds 71,000 units $ 742,500 Compute the direct materials price and quantity variances and identify each as favorable or unfavorable. Direct labor efficiency variance Direct labor rate variance Direct materials price variance Direct materials quantity variance 0 $ 0 0 $ EA 0 Standard Cost Direct materials standard (3 pounds @ $3 per pound) Actual direct materials used (AQ) Actual units produced Actual cost of direct materials used AQ = Actual Quantity $ 9 per unit 270,000 pounds 71,000 units $ 742,500 SQ = Standard Quantity AP = Actual Price SP = Standard Price Compute the direct materials price and quantity variances and identify each as favorable or unfavorable. 0 EA 0 $ 0 0 Favorable Unfavorable No variance SA 0