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The following materials standards have been established for a particular product: Standard quantity per unit of output.......3.8 lbs/Standard price.......$13.00 per lb.
The following data pertain to operations concerning the product for the last month: Actual materials purchased......2,700 lbs./ Actual cost of materials purchased......$34,155/ Actual materials used in production 2000 lbs./ Actual output.......500 units.
a.What is the materials price variance for the month?
b.What is the materials quantity variance for the month?
Prepare journal entries for the transactions listed above and the adjusting entries.
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