Use the following information for the Exercises below.

A manufactured product has the following information for June.

	Standard	Actual
Direct materials	(7 lbs. @ $8 per lb.)		55,100	lbs. @ $8.10 per lb.
Direct labor	(2 hrs. @ $16 per hr.)		15,300	hrs. @ $16.60 per hr.
Overhead	(2 hrs. @ $13 per hr.)	$	208,600
Units manufactured			7,800

Exercise 8-9 Direct materials variances LO P2

Compute the direct materials price variance and the direct materials quantity variance. Indicate whether each variance is favorable or unfavorable. AQ = Actual Quantity SQ = Standard Quantity AP = Actual Price SP = Standard Price

Actual Cost Standard Cost AQ AQ SP SQ SP AP $ 0 Direct materials price variance 0 Unfavorable O Unfavorable Direct materials quantity variance Total direct materials variance nfavorable