Luckett Company's standards call for two feet of direct materials for each unit.The standard price of one foot is $2.Actual production was 50,000 units requiring 105,000 feet of direct materials.Luckett purchased 107,000 feet at a unit price of $2.10 per foot.
Required:
Calculate the direct materials price and quantity variances and indicate whether the variances are favorable or unfavorable.

Question

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The Answer of Luckett Company's standards call for two feet of direct materials for each unit.The standard price of one foot is $2.Actual production was 50,000 units requiring 105,000 feet of direct materials.Luckett purchased 107,000 feet at a unit price of $2.10 per foot.
Required:
Calculate the direct materials price and quantity variances and indicate whether the variances are favorable or unfavorable.

Luckett Company's Standards Call for Two Feet of Direct Materials