Ayers Company Reports the Following Standards for Direct Materials for the Year

Essay

Ayers Company reports the following standards for direct materials for the year:
Standard cost per pound $4.75
Standard amount per finished good 8.5 pounds
During the year, 460,000 finished goods were produced. The direct materials price variance was $14,200 unfavorable. The direct materials flexible budget variance was $980 favorable.
Calculate the following items regarding direct materials for Ayers Company for the year:
a. Direct materials quantity variance
b. Standard quantity of direct materials for actual production
c. Actual pounds of direct materials used for actual production