Material Variances Assume that a table manufacturer uses plastic tops. Plastic is purchased in large sizes, cut down as needed, and then glued to the tables.

A given-sized table will require a specified amount of plastic. If the amount of plastic needed per Type-F TV table is 4 square feet and the cost per square foot is 65¢, then the standard cost of plastic for a single TV table would be

$2.60. But a certain production run of 1,000 tables results in usage of 4,300 square feet at 70¢ per square foot, a total cost of $3,010.

Compute the price variance and the efficiency variance. lop4