Exercise 1) At Handy Dandy Refrigeration, the standard price for the Z847 electrical relay (a component used in the production of commercial refrigeration unit) is $25. Standards call for 2 relays per unit of finished product. In July, the company purchased 100 relays for $2,600. The company used 83 relays in the production of 40 refrigeration units (three relays were damaged in the installation process). Required: Calculate the material price variance and the material efficiency variance related to the Z847 electrical relay. Indicate whether the variances are favorable or unfavorable.

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Exercise 1) At Handy Dandy Refrigeration, the standard price for the Z847 electrical relay (a component used in the production of commercial refrigeration unit) is $25. Standards call for 2 relays per unit of finished product. In July, the company purchased 100 relays for $2,600. The company used 83 relays in the production of 40 refrigeration units (three relays were damaged in the installation process). Required: Calculate the material price variance and the material efficiency variance related to the Z847 electrical relay. Indicate whether the variances are favorable or unfavorable. Exercise 1) At Handy Dandy Refrigeration, the standard price for the Z847 electrical relay (a component used in the production of commercial refrigeration unit) is $25. Standards call for 2 relays per unit of finished product. In July, the company purchased 100 relays for $2,600. The company used 83 relays in the production of 40 refrigeration units (three relays were damaged in the installation process). Required: Calculate the material price variance and the material efficiency variance related to the Z847 electrical relay. Indicate whether the variances are favorable or unfavorable.