Direct Materials Price and Usage Variances
The Woods Enterprises prepared the following standard costs for the production of one stuffed bear:
Actual production costs for the production of 1,000 stuffed bears required 1,750 pounds of stuffing at a cost of $1.95 per pound and 1,950 labor hours at $15.25 per hour.
Required:
If required, round your answers to the nearest cent. Enter all amounts as positive numbers.
A. Calculate the direct material price variance.
B. Calculate the direct material usage variance.