Chapter 8, Problem 4E

(A)

To determine

Direct material variances:

The difference between the actual material cost per unit and the standard material cost per unit for the direct material purchased is known as direct material cost variance. The direct material variance can be classified as follows:

• Direct materials price variance.
• Direct materials quantity variance.

The direct materials price variance.

(B)

To determine

The variances for analysis and control should be reported for which department.