Ruby Company produces a chair for which the standard specifies 5 yards of material per unit. The standard price of one yard of material is $7.50. During the month, 8,400 chairs were manufactured, using 43,700 yards at a cost of $7.30 per yard. Determine the following: Enter favorable variances as negative numbers. a. Direct materials price variance $fill in the blank 1 b. Direct materials quantity variance $fill in the blank 3 c. Total direct materials cost variance

Total  direct material variance = $260

Price variance = $8,740 Favourable

Usage variance = $9,000 Adverse

Explanation:

Direct  material price variance

43,700×(7.50-7.30) = $8,740 Favourable

Direct material usage variance

                                                                               Yards

8,400 chairs should have used (8,400× 5)       42,500

but dis use                                                           43,700

                                                                             1,200 adverse

standard price                                                   × $7.50

Usage variance                                                  9.000 Adverse

Total  direct material variance = Price variance + quantity variance

= 8,740F + 9,000A= $260 A

Total  direct material variance = $260 Adverse

Price variance = $8,740 Favourable

Usage variance = $9,000 Adverse

answerthe above statement is false;

answer///supply is elastic, and demand is inelastic;