Luckett Company's Standards Call for Two Feet of Direct Materials

Essay

Luckett Company's standards call for two feet of direct materials for each unit.The standard price of one foot is $2.Actual production was 50,000 units requiring 105,000 feet of direct materials.Luckett purchased 107,000 feet at a unit price of $2.10 per foot.
Required:
Calculate the direct materials price and quantity variances and indicate whether the variances are favorable or unfavorable.