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

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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.

\$2.49