23. (Direct material variances) Iron Eagle makes wrought iron table and chair sets.

During April 2001, the purchasing agent bought 12,800 pounds of scrap iron at $0.89 per pound. Each set requires a standard quantity of 35 pounds at a standard cost of $0.85 per pound. During April, the company used 10,700 pounds and produced 300 sets.

a. For April, compute the direct material price variance (based on the quantity purchased) and the direct material quantity variance.

b. Identify the titles of individuals in the firm who would be responsible for each of the variances.

c. Identify some potential explanations for the variances computed in part

(a).