*Managerial Accounting: E8-6A Creative Productions manufactured and sold 800 products
Managerial Accounting E8-6A Direct Materials Variances Creative Productions manufactured and sold 800 products at $10,000 each during the past year. At the beginning of the year, production had been set at 1,000 products, and direct materials standards had been set at 10 pounds of direct materials at $12 per pound for each product produced. During the year, the company purchased and used 7,900 pounds of direct materials with a cost of $12.02 per pound.
Calculate the company's direct materials price and quantity variances for the year.