Five Rings, Inc, has collected the following data on one of its products:
Price variance = $31,500 unfavorable (quantity variance) - $11,050 unfavorable (cost variance given) = $20,450 favorable
| Direct materials standard (4 lbs.@ $ 1.00/b.) | $4.00per finished unit |
| Total direct materials cost variance— unfavorable | $11,050 |
| Actual direct materials used | 157,500 lbs |
| Actual finished units produced | 31,500 units |
| The direct materials price variance is: |
| $11,050 unfavorable. | |
| → | $20,450 favorable. |
| $34,650 favorable. | |
| $31,500 unfavorable. | |
 | $20,450 unfavorable. |
