Final answer:
The direct materials price variance is $18,090 (unfavorable), the direct materials quantity variance is $22,680 (unfavorable), and the total direct materials cost variance is $40,770 (unfavorable).
Step-by-step explanation:
To calculate the direct materials price variance, we use the formula: (Actual Price - Standard Price) x Actual Quantity. Here, the standard price of one yard of material is $14.00, and the actual price is $14.70 per yard. The actual quantity used is 26,100 yards. Plugging these values into the formula, we get: (14.70 - 14.00) x 26,100 = $18,090. This indicates an unfavorable variance of $18,090.
To calculate the direct materials quantity variance, we use the formula: (Actual Quantity - Standard Quantity) x Standard Price. Here, the standard quantity per unit is 4 yards, and the actual quantity used is 26,100 yards. The standard price is $14.00 per yard. Plugging these values into the formula, we get: (26,100 - (6,400 x 4)) x 14.00 = $22,680. This indicates an unfavorable variance of $22,680.
The total direct materials cost variance is the sum of the direct materials price variance and the direct materials quantity variance. Adding the unfavorable variances together, we get: $18,090 + $22,680 = $40,770. This indicates a total unfavorable variance of $40,770.