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Question - The standard cost of Product B manufactured by Pharrell Company includes 2.6 units of direct materials at $5.5 per unit.
During June, 27,200 units of direct materials are purchased at a cost of $5.45 per unit, and 27,200 units of direct materials are used to produce 10,400 units of Product B.
(a) Compute the total materials variance and the price and quantity variances.
(b) Compute the total materials variance and the price and quantity variances, assuming the purchase price is $5.55 and the quantity purchased and used is 26,900 units.
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