Required information

Use the following information for the Exercises below.

[The following information applies to the questions displayed below.] A manufactured product has the following information for June.

	Standard	Actual
Direct materials	(6 lbs. @ $8 per lb.)		46,100	lbs. @ $8.10 per lb.
Direct labor	(3 hrs. @ $17 per hr.)		22,600	hrs. @ $17.50 per hr.
Overhead	(3 hrs. @ $12 per hr.)	$	279,700
Units manufactured			7,600

Exercise 23-9 Direct materials variances LO P2

AQ = Actual Quantity SQ = Standard Quantity AP = Actual Price SP = Standard Price

Compute the direct materials price variance and the direct materials quantity variance. Indicate whether each variance is favorable or unfavorable.