# Direct Materials VariancesBellingham Company produces a product that requires 9 standard pounds per unit. The standard price is \$3.5 per pound. If 3,600 unitsrequired 33,000 pounds, which were purchased at \$3.39 per pound, what is the direct materials (a) price variance, (b) quantity variance, and(c) total direct materials cost variance? Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as apositive numbera. Direct materials price varianceb. Direct materials quantity variancec. Total direct materials cost variance

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Step 1

Variance is referred as the difference. In calculating price variance, a difference in the standard price of material and its actual price is calculated. In calculating quantity variance, difference between the standard quantity and actual quantity usage is calculated. Variance can be favorable or unfavorable.

Step 2

Actual quantity: 33,000 pounds

Actual price: \$3.39 per pound

Standard price: \$3.5 per pound

Standard quantity: (3,600×9) = 32,400

a)

Direct material price variance is calculated as follows:

Step 3

b)

Direct material quantity variance is cal...

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