Final answer:
The direct materials price variance and quantity variance can be calculated for each job, providing insights into cost differences and material usage. Calculating the quantity variance helps evaluate the efficiency of material usage and identify potential cost savings or excess costs.
Step-by-step explanation:
The direct materials price variance is calculated by multiplying the difference between the actual price and the standard price by the actual quantity used. For each job, the direct materials price variance can be calculated as follows:
Job 1: ($9,900 - (7,250 * $0.205)) = $187.50 favorable variance
Job 2: ($9,900 - (9,000 * $0.205)) = $405 unfavorable variance
Job 3: ($9,900 - (2,250 * $0.205)) = $137.50 unfavorable variance
The direct materials quantity variance is calculated by multiplying the difference between the actual quantity used and the standard quantity by the standard price. It shows the impact of using more or less materials than expected. For each job, the direct materials quantity variance can be calculated as follows:
Job 1: (7,250 - 7,500) * $0.205 = $51.25 favorable variance
Job 2: (9,000 - 8,800) * $0.205 = $41 unfavorable variance
Job 3: (2,250 - 2,300) * $0.205 = $10.25 favorable variance
Calculating the direct materials quantity variance for each job allows managers to identify if the materials were used efficiently and whether any additional costs were incurred due to excess or shortage of materials. It helps in evaluating the performance of each job and making necessary adjustments for future projects.