Bellingham Company produces a product that requires 14 standard pounds per unit. The standard price is $6.5 per pound. If 2,700 units used 37,000 pounds, which were purchased at $6.7 per pound, what is the direct materials (a) price variance, (b) quantity variance, and (c) cost variance? Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number.
a. Direct materials price variance 7400 Unfavorable
b. Direct materials quantity variance ? Favorable
c. Direct materials cost variance ? Unfavorable