The standard cost of Product B manufactured by Lopez Company includes three units of direct materials at $5.00 per unit. During June, 30,000 units of direct materials are purchased at a cost of $4.80 per unit, and 27,200 units of direct materials are used to produce 9,000 units of Product B.

Instructions

(a) Compute the materials price and quantity variances.

(b) Repeat (a), assuming the purchase price is $5.10 and the quantity used is 26,400 units