Reference no: EM132687203

Problem - Direct materials variances - The May Company manufactures plastic toy cars. Each toy car requires 16 standard pounds of resin (plastic). Each pound of resin has a standard cost of $3.25 per pound. Actual production information is as follows:

Volume: 800 toy cars

Actual material price per pound: $3.15

Actual pounds of resin used to produce each car: 16.2

Actual total pounds of used: 12,960 (800 cars x 16.2 pounds)

Required - Determine the direct materials price variance, direct materials quantity variance, and the direct materials cost variance.