Belle Company recently set-up its standard costs for its direct materials.

The entity sets the

benchmark at 3 units of direct materials per product at a standard price of P5 per unit of direct
material.

During the year, the entity acquired 400 units of direct materials at a total cost of P2,400 or P6 per
unit. The entity also manufactured 100 products using 250 units of direct materials.

What is the direct material price variance?

A. 250 unfavorable
B. 300 favorable
C. 350 favorable
D. 400 unfavorable

What is the direct material usage variance?

E. 150 unfavorable
F. 300 unfavorable
G. 250 favorable
H. 350 favorable