Direct Materials (DM) Variances: Out to Get You, Ltd

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Direct Materials (DM) Variances: Out to Get You, Ltd. has set the following standards for direct materials (DM) costs per unit for the good it manufactures: Standard Quantity: 8 kg. per unit Standard Price: $3.50 per kg During the month of August, the firm incurred the following actual DM costs to produce 2,900 units: Actual Quantity: 24,650 total kgs Actual Price: $3.30 per kg a. Calculate the DM cost variance. Indicate whether this variance is favorable (F) or unfavorable (U). b. Calculate the DM price variance. Indicate whether this variance is favorable (F) or unfavorable (U). Calculate the DM quantity variance. Indicate whether this variance is favorable (F) or unfavorable (U). C.