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Direct Materials Variances
I-Time, Inc., produces electronic timepieces. The company uses mini-LCD displays for its products. Each timepiece uses one display. The company produced 470 timepieces during October. However, due to LCD defects, the company actually used 490 LCD displays during October. Each display has a standard cost of $6.50. The company purchased 490 LCD displays for October production at a cost of $2,820.
Determine the price variance, quantity variance, and total direct materials cost variance for October. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number. Round your per unit computations to nearest cent, if required.
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