Matt’s materials quantity variance for the current month was exactly one-half of its materials price variance. Both variances were unfavorable. The company’s cost accountant has supplied the following standard cost information.

Instructions.
a. Compute Matt’s materials price variance.
b. Compute the standard quantity of materials allowed for producing 1,200 units of product.
c. Record the journal entry to charge work in process for the cost of materials used during the month.
d. Assume Matt’s overhead volume variance is five times the amount of its materials quantity variance. Is the volume variance favorable or unfavorable? How do you know?

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Standard price per pound of materials ..... Actual pounds purchased and used during the month Actual cost per pound of materials purchased and used Actual units manufactured during the month Normal productive output per month .... $30 1,800 pounds $33 1,140 units 1,200 units