Wipe UR Tears, Inc. is a manufacturer of tissue paper. It's most popular product, called the Waterfall Wrangler, sells in boxes that hold 20 tissues.

One box of Waterfall Wranglers is expected to use 4 pounds of direct material at a standard direct material cost of $0.75 per pound. During the period, the company purchased 75,000 pounds of direct material at a total cost of $60,000. To produce 18,000 boxes of Waterfall Wranglers, 70,000 pounds of direct material were used.

Direct Labor is anticipated to cost $3.00 per box of Waterfall Wranglers. The company also anticipates that 0.20 direct labor hours will be logged for each bottle produced. During the period, direct laborers worked 3,000 hours and were paid $16.50 per hour.

Given the information above, which of the following statements is correct?

Question 6 options:

	The direct material price variance is favorable.
	Total direct material variance can be calculated by adding the direct material price variance and the direct material quantity variance.
	The standard labor rate was greater than the actual labor rate.
	The standard direct material input ratio was less than the actual direct material input ratio.
	The standard direct material price was less than the actual price paid for direct materials.