Thrope, Inc.purchased 1,700 pounds of direct materials at a price of $1.20 per pound.The standard price of the material is $1.30 per pound.Thrope used 1,500 pounds in production while the standard pounds allowed for actual production was 1,300.
Required:
Calculate the direct materials price and quantity variances and indicate whether the variances are favorable or unfavorable.

Question

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The Answer of Thrope, Inc.purchased 1,700 pounds of direct materials at a price of $1.20 per pound.The standard price of the material is $1.30 per pound.Thrope used 1,500 pounds in production while the standard pounds allowed for actual production was 1,300.
Required:
Calculate the direct materials price and quantity variances and indicate whether the variances are favorable or unfavorable.