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The following standards have been established for a raw material used to make product I92:
Standard quantity of the material per unit of output
4.5 pounds
Standard price of the material
$13.90 per pound
The following data pertain to a recent month's operations:
Actual material purchased
2,000 pounds
Actual cost of material purchased
$26,200
Actual material used in production
1,300 pounds
Actual output
220 units of product I92
Required:
a. What is the materials price variance for the month?
b. What is the materials quantity variance for the month?
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