Ransom, Inc. budgets direct materials cost at $1.10/liter and each product requires 4 liters per unit of finished product. April's activities show usage of 832 liters to complete 196 units at a cost of
$798.72. Compute the direct materials price and quantity variances. Indicate if the variance is favorable or unfavorable.

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The Answer of Ransom, Inc. budgets direct materials cost at $1.10/liter and each product requires 4 liters per unit of finished product. April's activities show usage of 832 liters to complete 196 units at a cost of
$798.72. Compute the direct materials price and quantity variances. Indicate if the variance is favorable or unfavorable.