Turlock Tube, Inc., manufactures metal tubing. The standard materials usage for each unit is 0.5 pounds. The standard cost of metal is $4 per pound. Actual results for September follow:
Production |
100,000 units |
Materials used |
52,000 pounds |
Materials purchased (67,000 pounds) |
$261,300 |
Compute the material purchase price variance and the material efficiency variance for September.