Answer:
Instructions are below.
Explanation:
Giving the following information:
Standard quantity= 5 yards of material per unit.
The standard price= $8.50 per yard
During the month, 8,800 parts were manufactured, using 45,700 yards of material at a cost of $8.30.
To calculate the direct material price and quantity variance, we need to use the following formulas:
Direct material price variance= (standard price - actual price)*actual quantity
Direct material price variance= (8.5 - 8.3)*45,700
Direct material price variance= $9,140 favorable
Direct material quantity variance= (standard quantity - actual quantity)*standard price
Standard quantity= 8,800*5= 44,000
Direct material quantity variance= (44,000 - 45,700)*8.5
Direct material quantity variance= $14,450 unfavorable
Total direct material cost= 9,140 - 14,450= $5,310 unfavorable