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?