Chapter 8, Problem 5E

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 price variance for the month of December.

To determine

The quantity variance for the month of December.

To determine

The total direct materials cost variance for the month of December.