S11-4 Calculate direct material variances when the quantity purchased differs from the quantity used (Learning Objective 2)

Brooke Landscaping produces faux boulders to be used in various landscaping applications. A special resin is used to make the planters. The standard quantity of resin used for each boulder is 9 pounds. Brooke uses a standard cost of $1.80 per pound for the resin. Brooke produced 1,500 boulders in June. In that month, 16,000 pounds of resin were purchased at a total cost of $32,000. A total of 13,400 pounds were used in producing the boulders in June.

Requirements

1. Calculate the direct materials price variance.

2. Calculate the direct materials quantity variance