Reference no: EM132814043

Problem - Acme Company's production budget for August is 19,400 units and includes the following component unit costs: direct materials, $10.00; direct labor, $12.50; variable overhead, $6.00. Budgeted fixed overhead is $51,000. Actual production in August was 20,928 units. Actual unit component costs incurred during August include direct materials, $10.50; direct labor, $12.00; variable overhead, $6.50. Actual fixed overhead was $54,400. The standard direct material cost per unit consists of 10 pounds of raw material at $1 per pound. During August, 274,680 pounds of raw material were used that were purchased at $0.80 per pound.

Required - Calculate the materials price variance and materials usage variance for August.