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Question - Materials cost variances. A company manufactures a number of electronic items for general use. One of these products, a connector, requires an expensive material, X-345, in its manufacture. During the recent month, the company manufactured 6,000 units of this product using 17,000 units of X-345 in the process. The materials cost was P56, 100. The standard for one connector is 3 X-345 at a cost of P3.00 per material.
Required -
1. Compute the total standard materials cost.
2. Compute the materials price and quantity variances, assuming materials price variance is determined at the time the material is used.
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