Let "AQ" = Actual Quantity of Direct Materials Issued to Production

Essay

Let "AQ" = actual quantity of direct materials issued to production, AP = actual price paid per unit of direct material purchased, SP = standard price per unit of direct material, and SP = standard quantity of direct materials allowed based on actual output for the period.
Required:
Use the above notation to develop a formula (i.e., an equation) for each of the following standard cost variances:
1. Direct materials price variance (calculated at point of production, not point of purchase).
2. Direct materials usage variance.
3. Flexible-budget (FB) variance for direct materials.
4. Joint price-quantity variance for direct materials.