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The next six questions are based on the following information. Carol's Cookies expected to use 1.5 pounds of direct materials to produce 1 unit (batch) of product at a cost of $2 per pound. Actual results are in for last year, which indicates 390,000 batches of cookies were sold. The company purchased 640,000 pounds of materials at $1.80 per pound and used 624,000 pounds in production. What is the total dollar amount of the standard material cost? What is the total amount of the actual material cost? What is the dollar amount of the materials price variance? The materials price variance is Favorable or Unfavorable? What is the dollar amount of the materials quantity variance? The materials quantity variance is Favorable or Unfavorable? Carol's Cookies' purchasing agent is a strong negotiator and was able to negotiate lower prices than anticipated. This is likely to result in a favorable price variance. T/F Carol's Cookies' purchasing agent is a strong negotiator and was able to negotiate lower prices than anticipated. This is likely to result in a favorable quantity variance. T/F Lower-quality materials were purchased at a lower price. This is likely to result in a favorable price variance. T/F Lower-quality materials were purchased at a lower price. This is likely to result in a favorable quantity variance. T/F Lower-quality materials resulted in more waste and spoilage. This is likely to result in an unfavorable price variance. T/F Lower-quality materials resulted in more waste and spoilage. This is likely to result in an unfavorable quantity variance. T/F

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