Hutto corp. has set the following standard direct materials and direct labor costs per unit for the product it manufactures.
direct materials (15 lbs. @ $3 per lb.) $45
direct labor (2 hrs. @ $15 per hr.) 30
during may the company incurred the following actual costs to produce 9,000 units.
direct materials (137,100 lbs. @ $2.80 per lb.) $ 383,880
direct labor (21,600 hrs. @ $15.10 per 326,160
required :
(1) compute the direct materials price and quantity variances. (indicate the effect of each variance by selecting for favorable, unfavorable, and no variance.)

-$27,420 Favorable; $6,300 Unfavorable

Explanation:

Direct material price variance:

= (Actual Quantity × Actual Rate) - (Actual Quantity × Standard Rate)

= (137,100 × $2.80) - (137,100 × $3)

= $383,880 - $411,300

= -$27,420 Favorable

Direct material quantity variance:

= (Actual Quantity × Standard Rate) - (Standard Quantity × Standard Rate)

= (137,100 × $3) - [(9,000 × $15) × $3]

= $411,300 - $405,000

= $6,300 Unfavorable

d, conspicuous consumption is when you try to increase your wealth or social status (and in the case he's trying to create the perception of wealth considering he can't really afford it)