Materials Variances. Standard quantities and costs of parts for a tricycle manufactured by Cycle Specialties, Inc. are as follows:

This year, the company assembled 60,000 tricycles. No materials were on hand either at the beginning or at the end of the year. The quantities purchased and used in production at actual costs are as follows:

\section*{Required:}
1. Compute the materials price variance and the materials usage variance for each component.
2. Determine the total materials price variance and the total materials usage variance.
3. Identify components with relatively large price variances and components with relatively large usage variances.

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Description Wheels Frame Handle bars. Fenders... Steering assembly Parts Per Tricycle 3 Cost Per Unit of Part 1 231 $3.00 2.50 0.80 0.60 1.00