Compute materials quantity and price variances. (Obj. 3). The Sanger Company manufactures a product using a special type of alloy.

Each unit of product should require 2^ feet of alloy. The standard cost of the alloy is $1.75 per foot. During February 19X9, 28,260 units of product were manufactured, requiring 71,310 feet of alloy at a total cost of $122,653.20. Compute the materials quantity variance and the materials price variance for the month. Show whether the variances are favorable or unfavorable.

LO.1