Smith Industries uses a cost system that carries direct materials inventory at a standard cost. The controller has established these standards for the cost of one basket (unit): Direct Materials Standard Qty Standard Price Standard Cost 5 pounds $2.60 per pound $ 18.00 Smith Industries made 3,000 baskets in July and used 15,500 pounds of material to make these units; they paid $39,370 for the 15,500 pounds of material. 1. Calculate the direct materials price variance for July, and indicate if the variance is favorable or unfavorable. 2. Calculate the direct materials quantity variance for July, and indicate if the variance is favorable or unfavorable. 3. Calculate the total spending variance for July, and indicate if the variance is favorable or unfavorable. (Round all solutions to the nearest whole dollar)

Smith Industries uses a cost system that carries direct materials inventory at a standard cost. The controller has established these standards for the cost of one basket (unit): Smith Industries made 3,000 baskets in July and used 15,500 pounds of material to make these units; they paid $39,370 for the 15,500 pounds of material. 1. Calculate the direct materials price variance for July, and indicate if the variance is favorable or unfavorable. 2. Calculate the direct materials quantity variance for July, and indicate if the variance is favorable or unfavorable. 3. Calculate the total spending variance for July, and indicate if the variance is favorable or unfavorable. (Round all solutions to the nearest whole dollar)