TB Problem 9-106 (Algo) [LO 9-3] Regent Corporation uses a standard cost system to account for the costs of its one product. Materials standards are 3 pounds of material at $14.00 per pound, and labor standards are 23 hours of labor at a standard wage rate of $9.1. During July, Regent Corporation produced 2,350 units. Materials purchased and used totaled 12,000 pounds at a total cost of $144,613. Payroll totaled $165,780 for 108,150 hours worked. Required: a. Calculate the direct materials price variance. Note: Do not round your intermediate calculations. Indicate the effect of variance by selecting "Favorable", "Unfavorable", or "None" for no effect (i.e., zero variance). b. Calculate the direct materials quantity variance. Note: Indicate the effect of variance by selecting "Favorable", "Unfavorable", or "None" for no effect (i.e., zero variance). c. Calculate the direct materials spending variance. Note: Indicate the effect of variance by selecting "Favorable", "Unfavorable", or "None" for no effect (i.e., zero variance). a. Price Variance b. Quantity Variance c. Spending Variance

Regent Corporation uses a standard cost system to account for the costs of its one product. Materials standards are 3 pounds of material at $14,00 per pound, and labor standards are 23 hours of labor at a standard wage rate of $9.1. During July, Regent Corporation produced 2,350 units. Materials purchased and used totaled 12,000 pounds at a total cost of $144,613. Payroll totaled $165,780 for 108,150 hours worked. Required: a. Calculate the direct materials price variance. Note: Do not round your intermediate calculations. Indicate the effect of variance by selecting "Favorable", "Unfavorable", or "None" for no effect (i.e., zero variance). b. Calculate the direct materials quantity variance. Note: Indicate the effect of variance by selecting "Favorable", "Unfavorable", or "None" for no effect (i.e., zero variance). c. Calculate the direct materials spending variance. Note: Indicate the effect of variance by selecting "Favorable", "Unfavorable", or "None" for no effect (i.e., zero variance)