The Melton Company has set the standard direct materials cost for one of its products at $12 per unit (4 pounds per unit @ $3 per pound). During March, Melton purchased 4,100 pounds of this direct material on credit at a total cost of $12,050 and used 3,800 pounds to produce 930 units of product.

Required: (1) Compute Melton’s direct materials price and quantity variances for March.

 TKY-1

(2) Using T-accounts, prepare the entries for Melton to record

(a) the purchase of this direct material and

(b) the use of this direct material.