Refer to the information for Lata Inc. above.
Lata Inc., produces aluminum cans. Production of 12- ounce cans has a standard unit quantity of 4.5 ounces of aluminum per can. During the month of April, 300,000 cans were produced using 1,250,000 ounces of aluminum. The actual cost of aluminum was $ 0.09 per ounce and the standard price was $ 0.08 per ounce. There are no beginning or ending inventories of aluminum.
Required:
Calculate the materials price and usage variances using the columnar and formula approaches.