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Question - For 2009, PMD Inc. had set the following standards for production of metal tables: 35 pounds of iron at a standard cost of $2.60 per pound. During June the company produced 300 tables. The company bought 10, 625 pounds of iron at a cost of $25,500.
Required: Assume instead that the company purchased 12,500 pounds of iron during June at the actual price per pound computed in part (a), but only 10,625 in the production of the 300 tables. What are the material price and quantity variances for June? Can a total material variance be computed? Explain.
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