The standard cost of Chocolate Attack Brownies manufactured by Jordan and Taylor includes 8 ounces of cocoa powder at $12.00 per pound. During June, 27,000 pounds of cocoa powder are purchased at a cost of $11.80 per pound and used to produce 53,500 tins of Chocolate Attack Brownies.
1. What is the direct material price variance? (Remember to include whether the variance is favorable or unfavorable with the dollar amount.)
2. What is the direct material quantity variance? (Remember to include whether the variance is favorable or unfavorable with the dollar amount.)