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A company produces a product that requires 2.5 standard pounds per unit. The standard price...

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Accounting

A company produces a product that requires 2.5 standard pounds per unit. The standard price is $3.75 per pound. If 15,000 units required 36,000 pounds, which were purchased at $4.00 per pound, what is the direct materials (a) price variance, (b) quantity variance, and (c) total direct materials cost variance? (d) Is the total direct materials variance favorable or unfavorable? (e) Provide an example of why the results in (d) might occur.

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