Standard Price and Volume

Parson Awning manufactures awnings and uses a standard cost system. The company allocates overhead based on the number of direct labor hours. The following are the company's cost and standards data:

$($Cfick the loon to view the standards.$)$

Actual cost and of $($Click the icor

All manufacturing

Read the requiren

Requirement $2$a$.$ Calculate the direct material variances. $($Enter the variances as positive numbers. Enter currency amounts to the nearest cent unfavorable $().$ Abbreviations used: $DM=$ Direct materials.$)$

First determine the formula for the price variance, then compute the price variance for direct materials.

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Determine the formula for the quantity variance, then compute the quantity variance for direct materials.

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