Chapter 4, Problem 5P

Morrison Industries manufactures wood polish. The standard direct materials quantity is 0.60 pounds per bottle at a cost of $2.50 per pound. The actual usage for the production of 40,000 bottles was 0.65 pounds per bottle at an actual cost of $2.45 per pound. Calculate the direct materials price variance and the direct materials quantity variance.

What was the direct materials price variance?

What is the total direct materials cost variance?