Answer:
Instructions are below.
Explanation:
Giving the following information:
Standard quantity per unit= 9.2 grams
Standard price= $14.70 per gram
Actual materials purchased= 5,500 grams
The actual cost of materials= $76,450
Actual materials used in production= 5,100 grams
Actual output= 540 units
To calculate the direct material variances, we need to use the following formulas:
Direct material price variance= (standard price - actual price)*actual quantity
Actual price= 76,450/5,500= $13.9
Direct material price variance= (14.7 - 13.9)*5,500= $4,400 favorable
Direct material quantity variance= (standard quantity - actual quantity)*standard price
Standard quantity= 540*9.2= 4,968 grams
Direct material quantity variance= (4,968 - 5,100)*14.7= $1,940.4 unfavorable