Calculate both the materials price variance

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Question - Old Stone Company management is analyzing the company's standard cost variances for direct materials for the most recent period. The following information was available from company records.

Actual quantity of materials used 48,000 units

Budgeted quantity of materials used 44,000 units

Actual price paid for materials $4 per unit

Budgeted price paid for materials $6 per unit

Required - Calculate both the materials price variance and the materials quantity variance for the period. Don't forget to indicate whether the variances are favorable or Unfavorable.

Reference no: EM133184093

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