Answer:
Instructions are below.
Explanation:
Giving the following information:
Standard:
Quantity= 4 pounds per unit
Cost= $1.3 per pound
Actual:
Purchase= 18,700
Used= 3,500 + 18,700 - 1,900= 20,300
Cost= 16,830/18,700= $0.9 per pound
Units produced= 4,700 units
T<u>o calculate the direct material price and quantity variance, we need to use the following formulas:</u>
<u></u>
Direct material price variance= (standard price - actual price)*actual quantity
Direct material price variance= (1.3 - 0.9)*18,700
Direct material price variance= $7,480 favorable
Direct material quantity variance= (standard quantity - actual quantity)*standard price
Direct material quantity variance= (4*4,700 - 20,300)*1.3
Direct material quantity variance= $1,950 unfavorable
