Answer:
Results are below.
Explanation:
<u>To calculate the direct material price and quantity variance, we need to use the following formulas:</u>
Direct material price variance= (standard price - actual price)*actual quantity
Direct material price variance= (6.7 - 6.65)*26,800
Direct material price variance= $1,340 favorable
Direct material quantity variance= (standard quantity - actual quantity)*standard price
Direct material quantity variance= (2.3*11,500 - 26,800)*6.7
Direct material quantity variance= $2,345 unfavorable
<u>Now, the total variance:</u>
Total direct material variance= Direct material price variance +/- Direct material quantity variance
Total direct material variance= 1,340 - 2,345
Total direct material variance= $1,005 unfavorable
