Direct Materials VariancesBellingham Company produces a product that requires seven standard pounds per unit. The standard price is $10.5 per pound. If 5,900 units used 43,000 pounds,which were purchased at $10.08 per pound, what is the direct materials (a) price variance, (b) quantity variance, and (c) cost variance? Enter a favorable variance asa negative number using a minus sign and an unfavorable variance as a positive number.a. Direct materials price variance$ 18,060 XFavorableb. Direct materials quantity variance$ 106,050 XUnfavorablec. Direct materials cost variance$ 124,110 XFavorableFeedbackCheck My WorkUnfavorable variances can be thought of as increasing costs (a debit). Favorable variances can be thought of as decreasing costs (a credit).Cost variance is the difference between the actual and standard total cost.

Step 1: First, calculate the standard Price and Quantity and Actual Price and Quantity, Standard…

Answered: Direct Materials Variances Bellingham…

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

Section: Chapter Questions

Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...

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