Direct Materials Variances
Tip Top Corp. produces a product that requires 15 standard gallons per unit. The standard price is $10 per gallon. If 3,600 units required 55,100 gallons, which were purchased at $10.3 per gallon, what is the direct materials (a) price variance, (b) quantity variance, and (c) cost variance? Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number.
|a. Direct materials price variance||$||Unfavorable|
|b. Direct materials quantity variance||$||Unfavorable|
|c. Direct materials cost variance||$||Unfavorable|
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