# Bayou Resins Company: determine the price variance, quantity variance, total direct materials variance and more...

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Â© BrainMass Inc. brainmass.com March 4, 2021, 6:26 pm ad1c9bdddfhttps://brainmass.com/business/accounting/performance-evaluation-variances-standard-costs-45117

#### Solution Preview

a) Direct Materials

Price Variance= Standard Price $3.40 less Actual Price $3.50 = Unfavorable Price variance $0.10

Quantity Variance = Standard Quantity 6000 less Actual Quantity 5930 = Favorable Quantity variance 70 pounds.

Direct Materials Cost Variance:

Standard Cost $6000 x $3.40 = $20,400 less Actual Cost $5930 x $3.50 = 20,755 gives us Unfavorable Direct Materials Cost variance of $355.

b) Direct Labor

Rate Variance = Standard rate $18.00 less Actual Rate $18.50 = Unfavorable Rate variance $0.50.

Time Variance = ...

#### Solution Summary

This solution provides steps necessary to evaluate performance using variances from standard costs.

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