Comparison of Materials Cost, Two Plants. Redwood Coatings Company manufactures a roof coating and sealant product in 5 -gallon pails in both the Holton plant and the McHugh plant. Materials cost is a large part of the total cost and varies from month to month. Standard quantities of materials used to manufacture each 5-gallon pail and the standard prices are as follows:

All materials purchased were used in production. The actual prices for the materials purchased and used were the same for both plants. Actual prices are as follows:

\section*{Required:}
1. Compute the total materials price variance by ingredient for both June and July.
2. Compute the materials usage variance by ingredient for each plant for each month.
3. Which plant had the larger usage variance in June? Which had the larger usage variance in July?

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Oil.. Metal. Sealer. Standard Quantities Standard Prices 5 gallons $3.00 per gallon 2 pounds 2.50 per pound 10 ounces 0.10 per ounce Production and cost data for the two plants for both June and July are as follows: Holton Plant McHugh Plant Product units manufactured: June 80,000 50,000 July.. 85,000 60,000 Quantity of materials used: June: Oil.... 416,000 gals. 252,000 gals. Metal 163,000 lbs. 102,000 lbs. Sealer 800,000 oz. 502,000 oz. July: Oil.. Metal 427,000 gals. 170,000 lbs. 320,000 gals. 126,000 lbs. Sealer 855,000 oz. 604,000 oz.