Reference no: EM132514705

Steinberg Company had the following direct materials costs for the manufacturing of product T in March:

Actual purchase price per pound of direct materials$7.90

Standard direct materials allowed for units of product T produced 2,500pounds

Decrease in direct materials inventory 140pounds

Direct materials used in production 2,700pounds

Standard price per pound of material$7.65

Required:

Question 1. What was Steinberg's direct materials purchase-price variance and its direct materials usage variance for March? Indicate whether each variance was favorable (F) or unfavorable (U).

Question 2. Prepare the appropriate journal entries for March.