Chapter 26, Problem 2DIE

To determine

Total Direct Materials Variance: The total material variance is a measure to determine the variation in the amount paid for the actual quantity and the amount that should have been paid based on the standard estimates. This is the sum of the material price variance and the material quantity variance.

Direct Material Price Variance: The direct material price variance is a measure to determine the variation in the actual price of the material and the standard price of the material which is estimated.

Direct Material Quantity Variance: The direct material quantity variance is a measure to determine the variation in the standard cost of the quantity which is estimated and the actual cost of the quantity which is incurred.

To determine: The total, price and quantity material variances.