Determine Direct Material Variances
The following information is presented for the Flowvalve Manufacturing Company.
Direct material price standard is $15 per pound.
Direct material quantity standard is 1/4 pound per finished unit
budgeted production is 20,000 finished units
6,000 pounds of direct material were purchased for $91,320
4650 pounds of direct material were used in production
18,000 finished units of product were produced
a Determine the direct material price variance
b Determine the direct material quantity variance in dollars