Determine the materials price and efficiency variances

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Question - Alpha Manufacturers' (AM) standards anticipate that there will be 3 pounds of raw material used for every unit of finished goods produced. AM began the month of May with 5,000 pounds of raw material, purchased 15,000 pounds for $19,500 and ended the month with 4,000 pounds on hand. The company produced 5,000 units of finished goods. The company estimates standard costs at $1.50 per pound. Determine the materials price and efficiency variances for the month of May?

Reference no: EM133183713

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