What is the direct materials price variance

Reference no: EM132080021

Question: Tip Top Corp. produces a product that requires eight standard gallons per unit. The standard price is $4 per gallon. If 2,200 units required 18,000 gallons, which were purchased at $3.88 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 $

b. Direct materials quantity variance $

c. Direct materials cost variance $

Reference no: EM132080021

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